Identify Whether the Following Characteristics/facts Are Relevant to a Finance

question 53

Essay

Identify whether the following characteristics/facts are relevant to a finance (capital)lease.
$$\begin{array} { | l | c | } \hline \text { Lease is for land. } & \text { Yes / No } \\\hline \text { The lease contains a bargain purchase option after } 3 \text { years. } & \\\hline \text { Lease is for manufacturing equipment. } & \\\hline \text { Minimum lease payments comprise } 80 \% \text { of the fair value of the leased asset. } & \\\hline \text { Lease does not transfer title to the lessee at the end of the lease. } & \\\hline \text { Lease payments exclude executory costs. } & \\\hline\end{array}$$

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Definitions:

Conspicuous Consumption

Conspicuous consumption is the acquisition and display of luxury goods or services to signal wealth, status, or social position.

Purchasing Behaviour

The decision-making processes and actions of consumers related to buying goods or services.

Cognitive Learning Theory

A theory in psychology that states learning happens through internal processing of information, emphasizing the roles of thought, understanding, and knowledge acquisition.

Mental Processes

Internal cognitive operations that involve thinking, reasoning, problem-solving, and planning, among other intellectual activities.