Which of the Following Is Not a Condition Which Would

question 15

Multiple Choice

Which of the following is not a condition which would require the recording of a lease contract as a finance lease?

• A) The lease transfers ownership of the property to the lessee.
• B) The lease contains a bargain purchase option.
• C) The lease term is less than 75% of the economic life of the leased property.
• D) The present value of the lease payments equals or exceeds 90% of the fair value of the leased property.

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Definitions:

Common Stock

An equity security representing ownership in a corporation, with rights to dividends and voting in corporate decisions.

Statement Of Cash Flows

A financial statement showing the cash inflows and outflows for a business over a specific period, categorized into operating, investing, and financing activities.

Presentation Of Activities

Presentation of activities typically refers to the manner in which a company's or organization's actions and functions are organized, documented, and reported.

Operating

Pertaining to the day-to-day functioning and management of a business or enterprise, often related to producing or offering goods and services.