Which Factor Would Contribute Toward the Lessor Classifying a Lease

question 2

Multiple Choice

Which factor would contribute toward the lessor classifying a lease as a finance lease?

• A)Lessor retains risk of breakage to leased asset.
• B)Lessor has reward of high resale value.
• C)Lessor does not have risk of change in demand for the leased asset.
• D)Lessor does not have guaranteed residual value.

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Definitions:

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression, taste sensation from the anterior two-thirds of the tongue, and supplies some glands.

Glossopharyngeal Nerves

The ninth pair of cranial nerves which are involved in tasting, swallowing, and the gag reflex.

Salivary Amylase

Enzyme secreted in the saliva that breaks down starch to maltose and isomaltose.

IgA

An antibody that plays a crucial role in the immune function of mucous membranes.