Which of the Following Is Not a Criterion for Defining

question 13

Multiple Choice

Which of the following is not a criterion for defining a lease as a capital lease?

• A)Ownership is transferred at the end of the lease agreement.
• B)The lease contains an option to purchase the asset at a bargain price.
• C)The present value of the lease payments at the beginning of the lease is 75% or more than the value of the asset.
• D)The lease term is at least 75% of the economic life of the asset.

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Definitions:

Activist

A person who actively advocates for, works towards, or supports a cause or policy aimed at social, political, economic, or environmental change.

Wealth

The abundance of valuable resources or material possessions, which can include assets like property, investments, and cash.

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Financial instruments issued by banks allowing the holder to exchange the cheque for local currency at various locations globally, intended to help travelers avoid the risks of carrying cash.

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A global network of computers that provides a vast array of information and communication facilities, including access to websites, email, and social media platforms.