Which of the Following Criteria Would Lead to a Lease's

question 75

Multiple Choice

Which of the following criteria would lead to a lease's being accounted for as a capital lease?

• A)The lease is for real property.
• B)The lease term is for four years, while the asset's useful life is ten years.
• C)The present value of the minimum lease payments is $92,000, while the fair market value of the leased asset is $100,000.
• D)The lease asset is guaranteed to revert to the lessor at the end of the lease term.

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Definitions:

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.

Bureaucratic Control

Control accomplished through rules and routines.

Standardized Rules

Established and uniform procedures and criteria that apply to all relevant parties in a given context to ensure consistency and fairness.

Scripted Greetings

pre-written messages used in customer service settings to ensure consistency and efficiency in communication with clients.