Under ASPE, Which Statement Is Correct for the Lessee

question 24

Multiple Choice

Under ASPE, which statement is correct for the lessee?

• A)If the present value of the minimum lease payments exceeds the fair value of the leased asset, the asset will be recorded on the balance sheet at the higher amount.
• B)If the present value of the minimum lease payments exceeds the fair value of the leased asset, the asset will be recorded on the balance sheet at the fair value amount.
• C)If the present value of the minimum lease payments is lower that the fair value of the leased asset, the asset will be recorded on the balance sheet at the unguaranteed residual value amount.
• D)If the present value of the minimum lease payments is lower that the fair value of the leased asset, the implicit rate must be used.

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Definitions:

Psychoanalytic

Pertaining to a method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Rational-Emotive

A form of psychotherapy that identifies irrational beliefs, challenges them, and encourages the adoption of more rational and self-helping thoughts.

Repressed Material

Thoughts, memories, or impulses that are pushed out of conscious awareness due to being considered psychologically threatening or unacceptable.

Positive Transference

In psychotherapy, it describes the phenomenon where a patient projects favorable emotions towards the therapist, often mirroring feelings associated with other relationships.