The 'Variable Lease Payments' that depend on an index or rate: MCQ with Answer and Explanation

Question

Share Report Error

The 'Variable Lease Payments' that depend on an index or rate:

A. Are included in the lease liability initially measured using the index/rate at commencement date

B. Are capitalised only if fixed

C. Are excluded from lease liability

D. Are always expensed

Answer: Option A

Solution (By JKSSB Mock Tests)

Variable payments based on index/rate are included; those based on performance/usage are excluded.

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

Share Report

S1: A Cash Book is a subsidiary book. S2: A Cash Book also acts as a ledger account. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The Cash Book is a subsidiary book (book of original entry) for cash transactions. It also serves as the Cash and Bank accounts in the ledger, eliminating the need to post them separately. Both statements are correct.

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

Question #2

Share Report

The 'Operating Cycle' concept is used to determine:

A. Fixed asset classification

B. Depreciation method

C. Inventory valuation

D. Current asset/liability classification

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
An asset/liability is current if expected to be realised/settled within the operating cycle or 12 months, whichever longer.

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

Question #3

Share Report

The term 'Net Realizable Value' means:

A. Original cost

B. Market price

C. Estimated selling price less costs to complete and sell

D. Replacement cost

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
NRV = estimated selling price in ordinary course less estimated costs of completion and estimated costs to make the sale.

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

Explore All Accountancy and Book Keeping MCQs