When Would Lessor Classify the Lease as an Operating Lease

question 74

Multiple Choice

When would lessor classify the lease as an operating lease?

• A)Lessor retains risk of breakage to leased asset.
• B)Lessor has reward of high resale value.
• C)Lessor does not have risk of change in demand for the leased asset.
• D)Lessor does not have guaranteed residual value.

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Definitions:

Inclusion

The practice of ensuring that all individuals, regardless of their differences, have equal access to opportunities and resources within an organization or society.

Flexible Working Conditions

Employment terms that allow workers flexibility in how, when, and where they work, often aiming to balance work and personal life.

Compensatory

Pertaining to or intended to provide compensation or reparation for loss, damage, or injury.

Punitive

Intended as punishment, often referring to measures or sanctions designed to penalize undesirable behavior.