Which Statement Is Correct for the Lessee

question 51

Multiple Choice

Which statement is correct for the lessee?

• A)If the minimum lease payments exceed fair value of the leased asset,the asset will be recorded on the balance sheet at the higher amount.
• B)If the minimum lease payments exceed fair value of the leased asset,the asset will be recorded on the balance sheet at the fair value amount.
• C)If the minimum lease payments are lower that the fair value of the leased asset,the asset will be recorded on the balance sheet at the unguaranteed residual value amount.
• D)If the minimum lease payments are lower that the fair value of the leased asset,the implicit rate must be used.

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Definitions:

Obsessive-Compulsive Disorder

A mental disorder where people feel the need to check things repeatedly, perform certain routines repeatedly, or have certain thoughts repeatedly.

Impulsively

Acting without forethought or consideration of the consequences.

Autism Spectrum Disorder

A range of developmental disorders characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.

Diagnosis Increase

Refers to the rise in the number of cases identified or diagnosed, which may be due to better awareness, improved diagnostic methods, or an actual increase in incidence.