Reference no: EM132488208

True or False

Question 1. ____ A lessee recording a lease as a capital lease will record depreciation on the leased property.

Question 2. ____ Because taxable income is lower in the current period, a deferral of income recognition is called a deferred tax asset.

Question 3. ____ Postretirement benefits are some of the largest estimates on financial statements.

Question 4. ____ A lease must meet at least two of the criteria set down in Statement of Financial Accounting Standard 13 to be a capital lease.

Question 5. ____ Postretirement benefits are not expensed until they are paid.

Question 6. ____ Lessees usually prefer to record leases as operating leases rather than capital leases.

Question 7. ____ The goals of financial reporting and income tax reporting are not the same.

Question 8. ____ The only postretirement benefit typically paid by companies is pensions.

Question 9. ____ Depreciation and interest are recorded by a lessee under a capital lease, but not an operating lease.

Question 10. ____ Actuaries are business professionals who deal with risk.