Which of the Following Is Not a Condition Under Which

question 204

Multiple Choice

Which of the following is not a condition under which the lessee must record the lease of an asset?

• A) The lease contains a bargain purchase option.
• B) The lease transfers ownership of the property to the lessee.
• C) The lease term is equal to 60% of the economic life of the lease property.
• D) The present value of the lease payments is 90% of the fair value of the leased property.

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Definitions:

Labour Costs

The total expenditure by businesses on employee compensation, including wages, salaries, and benefits.

Piecework Pay Plans

Compensation schemes where workers are paid based on the quantity of items they produce or complete, rewarding productivity and output.

Labour Costs

The total expenditure by employers for the compensation of employees, including wages, benefits, and other related expenses.

Lump-sum Merit

A one-time merit payment awarded to an employee instead of a permanent salary increase.