All of the Followings Are Ways in Which Companies Avoid

question 104

Multiple Choice

All of the followings are ways in which companies avoid leased assets capitalization in devising lease agreements, except:

• A)Ensure that the lease does not specify the transfer of title of the property to the lassee.
• B)Do not write in a bargain-purchase option.
• C)Arrange for the present value of the minimum lease payments to be sufficiently more than the fair value of the leased property.
• D)Set the lease term sufficiently below the estimated economic life of the leased property such that the economic life test is not met.

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Definitions:

Strenuous Exercise

Physical activity requiring significant effort and energy, often improving strength and endurance.

Getting Away

The act of taking a break or distancing oneself from a particular situation or environment, often for relaxation or mental health purposes.

Vacation

A period of time spent away from home or business in travel or recreation.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors, profoundly impacting an individual's daily functioning and quality of life.