If a Non-Cancellable Lease Contains a Bargain Purchase Option, the Lessee

question 7

Multiple Choice

If a non-cancellable lease contains a bargain purchase option, the lessee is expected to be able to pay all future rents, and the lessor is expected to incur unreimbursable costs during the lease term, the lessee and lessor should classify the lease as $\begin{array}{lll}&\text { Lessee}&\text { Lessor }\\ \text { I. } & \text { operating } & \text { operating } \\\text { II. } & \text { operating } & \text { capital } \\\text { III. } & \text { capital } & \text { capital } \\\text { IV. } & \text { capital } & \text { operating }\end{array}$

• A)I
• B)II
• C)III
• D)IV

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Definitions:

Overextension

In language development, the application of a word in a broader context than is appropriate, showing a child's developing linguistic capability.

Metalinguistic Awareness

The ability to reflect on and manipulate the structural elements of language.

Psycholinguistic Skills

The cognitive processes that enable humans to acquire, use, comprehend, and produce language.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' world view or cognition, often referred to as the Sapir-Whorf hypothesis.