To Determine Whether or Not an Operating Lease Should Be

question 219

Multiple Choice

To determine whether or not an operating lease should be cancelled early, the lessee should compare the:

• A) Number of months they have leased the asset to the number of months remaining in the lease period.
• B) Present value of the future lease payments to the amount already invested in the lease.
• C) Future value of the asset to the salvage value at the time the lease expires.
• D) Present value of the future lease payments to the value they place on the asset at that point in time.
• E) Rate of return on the lease to their current internal financing cost.

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Definitions:

Creative Aspect

The element of creativity involved in producing something original or imaginative in the arts, literature, or other forms of expression.

Vishnu

A principal Hindu deity, worshiped as the protector and preserver of the universe, often depicted with blue skin and holding a conch, discus, lotus, and mace.

Bodhi Tree

The sacred fig tree under which Siddhartha Gautama, the Buddha, is said to have attained enlightenment.

Buddhist Art

Buddhist Art covers the visual artistic practices inspired by Buddhism, including statues, paintings, and architecture that depict Buddhas, bodhisattvas, and narratives from Buddhist texts, prevalent across Asia.