What Is the Meaning of "Minimum Lease Payments

question 57

Multiple Choice

What is the meaning of "minimum lease payments"?

• A)Payments over the lease term including executory costs.
• B)Payments over the lease term excluding executory costs.
• C)Payments over the lease term until the bargain purchase option is exercised.
• D)Payments over the lease term until guaranteed residual value is received.

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Definitions:

Operating Expenses

Expenses incurred through the normal operations of a business, including salaries, rent, utilities, and marketing expenses, but excluding cost of goods sold and other non-operating expenses.

Merchandise Sold

Goods that have been sold and delivered to customers, generating revenue for the selling company.

Free Cash Flow

It refers to the amount of cash a company generates after accounting for capital expenditures, such as buildings or equipment. This cash can be used for expansion, dividends, or other purposes.

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting liquidity.