Under the pre-2019 accounting standards, GAAP identifies two different approaches in reporting leases by the lessee: capital lease method and the operating lease method. Which option best describes the financial statement effects of leasing on the financial statements of the lessee?

A. Lease Type: Operating; Assets: Increased; Liabilities: Increased; Expenses: Depreciation and Interest
B. Lease Type: Capital; Assets: Increased; Liabilities: Increased; Expenses: Rent
C. Lease Type: Operating; Assets: None; Liabilities: None; Expenses: Rent
D. Lease Type: Capital; Assets: None; Liabilities: None; Expenses: Rent
E. Lease Type: Operating; Assets: None; Liabilities: None; Expenses: Depreciation and Interest

In a macroeconomic context, what are implicit liabilities? money owed to people possessing government issued bonds. the amount of money that firms collectively owe to shareholders. money that the government has promised to pay in the future. payments that the federal government undertakes only during periods of recession. which of the choices is a significant implicit liability in the united states? military spending education spending national science foundation spending social security

Aquatic marine stores company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. aquatic uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 3 pounds per unit; $ 6 per pound direct labor: 4 hours per unit; $ 19 per hour during the first quarter, aquatic produced 5 comma 000 units of this product. actual direct materials and direct labor costs were $ 65 comma 000 and $ 330 comma 000, respectively. for the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5 comma 000 units.

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?