Which of the Following Statements Is TRUE? in Ontario There

question 73

Multiple Choice

Which of the following statements is TRUE? In Ontario there is a cooling off period

• A)for any consumer contract
• B)of 10 days for a purchase of a new house
• C)of 10 days for a fitness club membership
• D)of 10 days for a pay day loan for $300
• E)All of the above

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Definitions:

Unearned Interest Revenue-Leases

Revenue recognized from leasing transactions which has been collected but not yet earned, typically because the service period has not been completed.

Sales-type Lease

A lease agreement in which the lessor effectively transfers ownership and all risks and rewards of the asset to the lessee, resulting in immediate profit recognition.

Guaranteed Residual Value

The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.

Contingent Rentals

Lease payments that are not fixed but are instead based on the occurrence of a certain event or situation.