Which of the Following Is a Correct Statement of One

question 119

Multiple Choice

Which of the following is a correct statement of one of the capitalization criteria?

• A) The lease transfers ownership of the property to the lessor.
• B) The lease contains a purchase option.
• C) The lease term is equal to or more than 75% of the estimated economic life of the leased property.
• D) The minimum lease payments (excluding executory costs) equal or exceed 90% of the fair value of the leased property.

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Definitions:

Libertarianism

A political philosophy that emphasizes freedom, autonomy, and voluntary association.

Diminishing Marginal Utility

An economic theory suggesting that the utility or satisfaction derived from consuming more of a good decreases with each subsequent unit.

Maximin Criterion

A decision rule used in uncertainty situations that focuses on maximizing the potential minimum gain, thus minimizing the potential for loss.

Libertarian

A libertarian is an advocate for minimizing government intervention in personal and economic matters, favoring individual freedom and autonomy.