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:

Additional Commission

Extra earnings given to employees or salespersons on top of their standard commission, often based on reaching a specific target or sales goal.

Monthly Salary

Regular payment received by an employee from their employer for work performed, calculated on a monthly basis.

Commission

A commission refers to a fee paid to an agent or employee for facilitating a sale or completing a service, often calculated as a percentage of the sale price.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.