Which of the Following Statements About Costs Related to the Maintenance

question 30

Multiple Choice

Which of the following statements about costs related to the maintenance and insurance of a leased asset is correct?

• A) Maintenance and insurance costs are never included in the lease payments no matter who actually pays them.
• B) Maintenance and insurance costs must always be included in the lease payments no matter who actually pays them.
• C) If the lessee pays for maintenance and insurance of the asset, these costs must be included in the lease payments used in a lease-or-purchase analysis.
• D) If the lessor pays for maintenance and insurance of the asset, these costs must be included in the lease payments used in a lease-or-purchase analysis.

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Definitions:

Model Trains

Scaled-down reproductions of trains, used as a hobby to build and display rail transport scenes.

Rate

A measure used to quantify the frequency, occurrence, or percentage of a certain event or outcome over a specified period or among a specific sample size.

Additional Money

Funds that are required or provided beyond the initially agreed amount or investment.

Simple Interest

Simple interest is a method of calculating interest where the interest charge is computed only on the original principal, and not on the interest accrued over time.