Under ASPE, If Land Is the Sole Property Being Leased

question 50

Multiple Choice

Under ASPE, if land is the sole property being leased, and title does NOT transfer at the end of the lease, it should be accounted for as a(n)

• A) operating lease.
• B) capital lease.
• C) sales-type lease.
• D) direct-financing lease.

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Definitions:

Control Device

A device used to manage, direct, or regulate the behavior of other devices or systems.

Pilot Device

A manual or automatic device used to initiate control operations, such as signaling or actuating other devices within an electrical system.

Two-wire Control

Two-wire control is a simple control circuit configuration where the device is controlled directly by a switch or relay in one of the two wires supplying power.

Control Contacts

Control contacts are the parts of a relay or switch that make or break the connection in a control circuit, influencing the operation of a system or device.