Which of the Following Items Would Be Classified as Flexible

question 54

Multiple Choice

Which of the following items would be classified as flexible resources?

• A)salaried employees
• B)depreciation on building
• C)fuel to generate electricity internally
• D)lease on machinery

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Definitions:

Operating Lease

A lease agreement allowing the use of an asset but does not convey rights similar to ownership of the asset.

Direct Financing Capital Lease

A lease agreement where the lessor purchases an asset and leases it out to the lessee, earning interest revenue over the lease term.

Implicit Rate

The interest rate implied in the terms of a lease, representing the lessor's yield if not explicitly stated.

Financing Income-Leases

Income generated from leasing out assets, under which the lessor retains ownership of the asset and provides the lessee the right to use it for a specific period.