All of the Following Are Criteria for Capitalizing a Lease

question 58

Multiple Choice

All of the following are criteria for capitalizing a lease except?

• A)It is likely that the lessee will ultimately get ownership of the asset.
• B)The lessor and the lessee are unrelated companies.
• C)The lease term is long enough that the lessee receives most of the economic benefits of the asset.
• D)The present value of the lease payments is equal to most of the fair value of the asset.

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Definitions:

Sustainability

The practice of maintaining processes or states in ways that do not deplete the resources or harm the environment for future generations.

Global Development

The process of improving the economic, political, and social well-being of people worldwide, often focusing on reducing global inequalities.

Service Branding

The process of creating a unique identity and image for a service, differentiating it from competitors and embedding it in the minds of consumers.

Ethnocentricity

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a dismissive or derogatory view towards other cultures.