Which of the Following Facts Would Preclude a Lessor from Classifying

question 75

Multiple Choice

Which of the following facts would preclude a lessor from classifying a lease as a sales-type or direct financing lease?

• A) The undiscounted sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.
• B) The collectability of the minimum lease payments is reasonably assured.
• C) The lease term is 90% of the estimated economic life of the leased property.
• D) No important uncertainties exist about non-reimbursable costs yet to be incurred by the lessor.

Comprehend the role and function of the Equal Employment Opportunity Commission (EEOC) in enforcing employment laws.

Distinguish between different forms of workplace discrimination and their legal consequences.

Understand the significance of the Drug-Free Workplace Act of 1988 and its implications for employers and employees.

Recognize the principles of affirmative action and its application in the workplace.

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Definitions:

Compounded Annually

The process of adding the accumulated interest back to the principal sum at the end of each year, so that interest is earned on interest from that point forward.

Accountant

An accountant is a professional who performs accounting functions such as audits or financial statement analysis according to prescribed methods.

Retire

To retire means to withdraw from active working life, often due to reaching a certain age or completing enough years of service to qualify for pension benefits.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.