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:

Current Yield

The interest or dividends received from a security divided by the current market value of the security, often used to describe bonds.

Trading

The act of buying and selling assets, such as stocks, bonds, commodities, or currencies, in financial markets.

Commercial Paper

A short-duration, uncollateralized debt security issued by companies, generally utilized for funding payroll, accounts receivable, and stock inventories.

Corporate Bonds

Securities issued by companies to raise financing, typically offering fixed interest payments over a defined period.