For a Lessor to Classify a Lease as a Capital

question 35

Multiple Choice

For a lessor to classify a lease as a capital lease, ________.

• A) any one of the lessee criteria must be met; collectibility of the required minimum lease payments must be reasonably assured; and there must be no material uncertainties regarding the amount of future nonreimbursable costs to be incurred by the lessor under the terms of the lease
• B) all four of the lessee criteria must be met; and collectibility of the required minimum lease payments must be reasonably assured OR there must be no material uncertainties regarding the amount of future nonreimbursable costs to be incurred by the lessor under the terms of the lease
• C) any one of the lessee criteria must be met; and collectibility of the required minimum lease payments must be reasonably assured OR there must be no material uncertainties regarding the amount of future nonreimbursable costs to be incurred by the lessor under the terms of the lease
• D) all four of the lessee criteria must be met; collectibility of the required minimum lease payments must be reasonably assured; and there must be no material uncertainties regarding the amount of future nonreimbursable costs to be incurred by the lessor under the terms of the lease

---

Definitions:

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, resulting in no incentive to deviate.

Dominant Strategy

A strategy in game theory that is considered the best response regardless of what any other players do, providing the most advantageous outcome for a player.

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the other players remain unchanged.

Simultaneous Game

A simultaneous game is a type of game in game theory where all players make their decisions or moves at the same time without knowledge of the others' choices.