The 'Incremental Borrowing Rate' is used in lease accounting when: MCQ with Answer and Explanation

Question

Share Report Error

The 'Incremental Borrowing Rate' is used in lease accounting when:

A. The lessee cannot determine the interest rate implicit in the lease

B. The lessor does not disclose rate

C. For all leases

D. Never

Answer: Option A

Solution (By JKSSB Mock Tests)

If implicit rate is not readily determinable, lessee uses its incremental borrowing rate.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Input Tax Credit under GST is available for:

A. Exempted supplies only

B. All goods and services

C. Personal consumption goods

D. Goods and services used for business purposes

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Input tax credit can be availed only on inputs used for business purposes, subject to conditions under GST law.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A budget that is designed to change in accordance with the level of activity actually attained is a:

A. Rolling Budget

B. Flexible Budget

C. Zero-based Budget

D. Fixed Budget

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
A flexible budget adjusts for varying levels of output, clearly separating fixed and variable costs.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The term 'Window Dressing' in accounting refers to:

A. Manipulation of financial statements to present a better picture

B. Auditing process

C. Decorating the office

D. Maintaining proper records

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Window dressing is the act of manipulating financial data to make the company's financial position appear more favorable than it actually is.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs