Which Statement Is Correct About the Bargain Purchase Option (BPO)

question 3

Multiple Choice

Which statement is correct about the bargain purchase option (BPO) ?

• A)It is cash that the lessee will receive at the end of the lease.
• B)It cannot be assumed that the BPO will be exercised.
• C)It is excluded in the present value of the lease payment calculation.
• D)It means that it is almost certain that ownership will transfer to the lessee.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Malaria

A life-threatening disease transmitted through the bite of an infected Anopheles mosquito, characterized by fever, chills, and flu-like illness.

Nonrandom

Describes a process or selection method that is not determined by chance but possibly by human choice, algorithm, or natural law.