Which of the Following Statement Is True

question 31

Multiple Choice

Which of the following statement is true?

• A) Operating leases under GAAP are referred to as finance leases under IFRS.
• B) IFRS has an additional lessor criterion for capitalization that collectability of the payments required from the lessee is reasonably predictable.
• C) IFRS is more general in its provisions for determining if a lease arrangement transfers the risks and rewards of ownership.
• D) Under IFRS, in computing the present value of the minimum lease payments, the lessee is required to use the incremental borrowing rate.

---

Definitions:

Lack of Confidence

A state where consumers or investors are hesitant to spend or invest due to pessimism about economic conditions.

Ultimatum Game

A game in experimental economics where two players decide on how to divide a sum of money; the first player proposes a division, and the second player can either accept or reject it.

Fairness

The equity or impartiality in treatment, judgments, and allocation of resources among individuals or groups.

Maximization

Maximization involves choosing the best feasible option, given a set of constraints, to achieve the highest possible level of an objective, such as profit, satisfaction, or efficiency.