ACC 422 Week 5

Individual Assignments From the Text

Resource: Intermediate Accounting

Prepare written responses to the following assignments listed at the end of each chapter:

Ch. 13: Exorcices E13-1, E13-7, E13-11, & E13-13

Ch. 21: Question 3

Learning Team Assignments From the Text

Resource: Intermediate Accounting

Prepare written responses to the following assignments from the text:

Ch. 13: Problem P13-4

Ch. 14: Exercise E14-21

Ch. 21: Exercise E21-7

Learning Team Problem Presentation

Collaborate as a team to provide written responses to a facilitator-assigned problem.

Prepare a 5- to 10-minute oral presentation accompanied by a 7- to 9-slide Microsoft PowerPoint presentation illustrating your teams solution to the assigned problem.

Note. Each week, the facilitator assigns one Learning Team a problem to present that the team must complete during the succeeding Learning Team Meeting.

Discussion Questions

What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee? What types of organizations provide direct-financing leases?

What are the criteria for classifying a lease as operating or capital? Why is there a difference between the two? What are the implications of an operating lease versus a capital lease on an entitys financial statements?

What is residual value? What is the implication to the lessee if the residual value is guaranteed or unguaranteed? What is the implication to the lessor?

What are the advantages of operating and capital leases? What are the disadvantages? Why would a company pick one over the other?