From the Perspective of the Lessor, Which Statement Is Correct

question 35

Multiple Choice

From the perspective of the lessor, which statement is correct respecting the criteria for determining whether a lease is an operating or a finance lease?

• A)Substantially all of the risks and rewards of ownership have been transferred from the lessee to the lessor.
• B)There is a transfer of ownership to the lessee or a bargain purchase option (BPO)at the end of the lease.
• C)The lease term is a minor part of the economic life of the asset.
• D)The present value of the lease payments is greater than 50% fair value of the leased asset.

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Definitions:

Cultural Accounts

Explanations that highlight how cultural contexts and values shape beliefs, behaviors, and social norms.

Sexual Orientation

is an enduring pattern of emotional, romantic, and/or sexual attractions to men, women, or both sexes.

Early Adolescence

A developmental phase marking the transition from childhood to adolescence, often between the ages of 10 and 14, characterized by rapid physical, cognitive, and emotional changes.

Late Adolescence

A developmental stage occurring from roughly ages 15 to 19, marking the transition from adolescence to adulthood.