For Which of the Following Conditions Will the Lessor Classify

question 80

Multiple Choice

For which of the following conditions will the lessor classify a lease as a sales-type lease?

• A) The present value of the sum of the lease payments is equal to or more than the fair value of the underlying asset.
• B) The lease term is less than one year.
• C) The leased asset may be exchanged for a similar asset during the lease term.
• D) The collectability of the minimum lease payments is reasonably assured.

---

Definitions:

Brand Extension

The strategy of using an existing brand name for new products in different categories to leverage brand equity.

Natural Ingredients

Ingredients sourced from nature without artificial additives or processes, commonly emphasized in health and wellness products.

Retailers

Businesses that sell goods or merchandise directly to consumers through various channels, including brick-and-mortar stores and online platforms.

Private-label Brands

Brands that are owned and sold by a retailer or distributor, not the manufacturer, often positioned as cost-effective alternatives to national brands.