Which Is Not an Indicator to Classify the Lease as a "Finance

question 86

Multiple Choice

Which is not an indicator to classify the lease as a "finance" lease?

• A)Transfer of ownership to the lessee at the end of the lease term.
• B)A lease term that is 51% of the of asset's useful life.
• C)A lease term that contains a bargain purchase option.
• D)Minimum lease payments comprising 90% or more of the asset's fair value.

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Definitions:

Wealthy

Having a large amount of money, resources, or assets; rich.

Causal Connection

A relationship where one event (the cause) leads to the occurrence of another event (the effect).

Correlation

When two events occur together regularly at rates higher than probability.

Informal Fallacies

Errors in reasoning that occur due to problems in the content or context of an argument rather than its structure.