If, under GAAP, capital leases are considered long-term obligations, why, in many jurisdictions, are they not subject

Question:

If, under GAAP, capital leases are considered long-term obligations, why, in many jurisdictions, are they not subject to debt limitations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Government and Not for Profit Accounting Concepts and Practices

ISBN: 978-1118155974

6th edition

Authors: Michael H. Granof, Saleha B. Khumawala

See More Books

Question Posted: Aug 13, 2014 11:50 AM

See More Questions

In some emerging market economies, not only are debt obligations to foreigners denominated in dollars, but so are many of the economies internal debts, that is, debts of one domestic resident to...
Why is money not considered to be a capital resource in economics? Why is entrepreneurial ability considered a category of economic resource, distinct from labor? What are the major functions of the...
Why are encumbrances not considered expenditures under the modified accrual (GAAP) basis of governmental fund accounting?
In terms of the dielectric constant K, what happens to the electric flux through the Gaussian surface shown in Fig. 24.22 when the dielectric is inserted into the previously empty space between the...
Recall that the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) was obtained for each 992 senior managers at CPA firms. Numerical...
Show that: (a) The DCT of a length- $N$ sequence $x(n)$ corresponds to the Fourier transform of the length- $2 N$ sequence $\tilde{x}(n)$ consisting of $x(n)$ extended symmetrically; that...
In a large corporate computer network, user log-ons to the system can be modeled as a Poisson process with a mean of 25 log-ons per hour. What is the probability that there are no log-ons in an...
Westbrook Co. predicts that it will use 225,000 gallons of material during the year. The material is expected to cost $10 per gallon. It anticipates that it will cost $40 to place each order. The...
Two 4.0 kg masses are 3.0 m apart on a frictionless table. Each has 1.0 C of charge. Part A What is the magnitude of the electric force on one of the masses? Express your answer in newtons. F = VO...
As a securities analyst you have been asked to review a valuation of a closely held business, Wigwam Autoparts Heaven, Inc. (WAH), prepared by the Red Rocks Group (RRG). You are to give an opinion on...
What are demand bonds? When can they be reported as long-term, rather than current, obligations?
What are BANs, RANs, and TANs? Why are they accounted for differently?
Which of the following items is/are likely to be found in a companys statement of changes in equity? (i) Dividends paid (ii) Surplus on revaluation of non-current (fixed) assets (iii) Premium on the...
Write a lambda expression for a function that turns a string into a string made of the first letter, three periods, and the last letter, such as "W...d". (Assume the string has at least two letters.)...
Reimplement the remove method in the RedBlackTree class of Worked Example 17.2 so that the node is first removed using the binary search tree removal algorithm, and the tree is rebalanced after...
Consider a queue that is implemented as a circular array, as in Section 16.3.4. Describe two different scenarios in which race conditions can corrupt the data structure.
Suppose the heap nodes are stored in an array, starting with index 1. Prove that the child nodes of the heap node with index i have index 2 i and 2 i + 1, and the parent node of the heap node with...
What is the file pointer in a file? How do you move it? How do you tell the current position? Why is it a long integer?
How is stratification of legal education reflected in the stratification of the legal profession?
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
County Hospital is planning to purchase a new piece of medical equipment with a list price of $3,000,000. The medical equipment supplier has been experiencing low sales volume and is currently...
How are materialities (and immateriality) related to the proper presentation of financial statements? What factors and measures should be considered in assessing the materiality of a misstatement in...
How are materialities (and immateriality) related to the proper presentation of financial statements? What factors and measures should be considered in assessing the materiality of a misstatement in...
The treasurer of Joan Osborne Co. has heard that conservatism is a doctrine that is followed in accounting and, therefore, proposes that several policies be followed that is conservative in nature....
What is one way in which a leader can apply the "Status" part of the SCARF model to trigger the "Reward" response?
Complete the table to assess risks and develop contingencies for resources you are planning for. Potential risks Planned Response Risk associated with the acquisition or implementation of the...
Assignment: persuasive essay for or against Andrew Jackson. In you essay answer the question "Was he a "people's president" or was he more like a king?" Documentary:...

If, under GAAP, capital leases are considered long-term obligations, why, in many jurisdictions, are they not subject

Question:

Step by Step Answer:

The courts not GAAP determine the types of obligation...View the full answer

Government and Not for Profit Accounting Concepts and Practices

Students also viewed these Accounting questions