Which of the Following Items Would Not Be Included in the Calculation

question 22

Multiple Choice

Which of the following items would not be included in the calculation of the capital lease obligation?

• A)bargain purchase option
• B)guaranteed residual value
• C)executory costs
• D)any payments required for failure to renew or extend the lease

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.

Financial Accounting

Financial Accounting is the field focused on the collection, analysis, and reporting of financial transactions pertaining to a business, resulting in the production of financial statements.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting financial information for the pursuit of an organization's goals.

Distinguishing Characteristics

These are unique features or properties that set an entity, such as a product, brand, or organization, apart from others in its category.