If the Lessee Is Required to Buy the Asset at Any

question 132

True/False

If the lessee is required to buy the asset at any time in the leasing period, including at the end of the lease, the Canada Revenue Agency (CRA) may rule the contract a conditional sales arrangement and not a lease.

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Definitions:

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.

Business Cycle Trough

The phase in the business cycle where economic activity is at its lowest point, preceding a recovery or expansion period.

Purchasing Power

The financial ability to buy goods and services; it reflects the value of money in terms of the quantity of goods or services that one unit of money can buy.

Government Bonds

Debt securities issued by a government to support government spending and obligations.