Under ASPE, What Is the Meaning of "Minimum Lease Payments

question 39

Multiple Choice

Under ASPE, what is the meaning of "minimum lease payments"?

• A)Payments over the lease term including non-lease costs.
• B)Payments over the lease term excluding non-lease costs.
• C)Payments over the lease term until the bargain purchase option is exercised.
• D)Payments over the lease term until guaranteed residual value is received.

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Definitions:

Adjustment

An accounting action taken to alter financial statements' figures, ensuring they accurately reflect a business's financial status.

Note Receivable

A written promise for amounts to be received by a debtor, typically including interest amounts.

Interest Earned

The income received from investing in interest-bearing financial instruments, such as bonds, loans, or savings accounts.

Balance Sheet

An accounting record that presents the total value of a corporation's assets, its obligations, and the equity belonging to shareholders, reflecting the company’s financial state at a specific time.