Which of the following statements is correct?
a. For operating leases, initial direct costs are deferred and allocated over the lease term.
b. In a direct-financing lease, initial direct costs are added to the net investment in the lease.
c. In a sales-type lease, initial direct costs are expensed in the year of incurrence.
d. All of these answers are correct.
Ans: d. All of these answers are correct.
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Workers compensation insurance covers:
a. anyone employed by the broker either full-time or part-time. b. only office personnel. c. only the office manager and receptionist. d. only salespeople in the office.
For what minimum period should working papers related to tax practice be retained by the independent CPA?
A. For the period during which the entity remains a client of the independent CPA. B. For the period during which an auditor-client relationship exists but not more than 6 years. C. For the statutory period within which legal action may be brought against the independent CPA. D. For as long as the CPA is in public practice.