Given Its Importance,how Does the Accounting Profession Determine Whether a Lease

question 50

Multiple Choice

Given its importance,how does the accounting profession determine whether a lease is an operating lease or a purchase capital lease?

• A)by observing what ledger account the transaction was recorded in
• B)by determining the intentions of the lessee
• C)based on whether the item being leased is a capital asset or not
• D)based on whether title is likely to pass at the end of the lease period
• E)by asking whether the asset is to be used short-term or long-term

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Definitions:

Auditory Communication

refers to the exchange of information through verbal language and sounds that can be heard.

Linguistic Relativity Hypothesis

The concept that the structure of a language influences its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Cognitive Linguistic Hypothesis

A theory suggesting that language influences or shapes the speaker's worldview and cognitive processes.

Intonation

The variation of pitch while speaking, which can affect the meaning of words and sentences.