Which of the Following Facts Would Preclude a Lessor from Classifying

question 88

Multiple Choice

Which of the following facts would preclude a lessor from classifying a lease as a sales-type or direct financing lease?

• A)The undiscounted sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.
• B)The collectibility of the minimum lease payments is reasonably assured.
• C)The lease term is 75% of the estimated economic life of the leased property.
• D)No important uncertainties exist about unreimbursable costs yet to be incurred by the lessor.

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Definitions:

Numeric Values

Quantitative data represented in number form, which can be used in calculations and statistical analyses.

Arithmetic Operations

Basic mathematical operations including addition, subtraction, multiplication, and division.

Quantitative

Pertaining to the measurement or quantity of something, often involving numbers and statistical analysis.

Variable

An attribute or characteristic that can vary among subjects in a study, often classified as dependent or independent.