The Following Are Indicators in the Terms of a Lease

question 11

Multiple Choice

The following are indicators in the terms of a lease that cause it to be treated as a capital lease.The indicators are: (1) Losses clue to cancellation of the lease by the lessee are borne by the lessee.
(2) Gains and losses due to changes in the fair value of the leased asset are captured by the lessee.
These indicators are criteria that trigger lease capitalization under
$\begin{array}{lll}&\text {G A A P}&\text { IFRS }\\\text { I. } & \text { Yes } & \text { Yes } \\\text { II. } & \text { Yes } & \text { No } \\\text { III. } & \text { No } & \text { Yes } \\\text { IV. } & \text { No } & \text { No }\end{array}$

• A)I
• B)II
• C)III
• D)IV

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Definitions:

Sensory Input

Information received by the body's sensory organs, which is then sent to the brain for processing.

Body Maintenance

The biological processes and behaviors that keep the body functioning properly, including repair and immune responses.

Basic Visual Information

The fundamental elements of what the eye perceives, such as color, shape, boundaries, movement, and spatial relationships.