All of the Followings Are Ways in Which Companies Avoid

question 39

Multiple Choice

All of the followings are ways in which companies avoid leased assets capitalization in devising lease agreements, except:

• A)Ensure that the lease does not specify the transfer of title of the property to the lessee.
• B)Do not write in a bargain-purchase option.
• C)Arrange for the present value of the minimum lease payments to be sufficiently more than the fair value of the leased property.
• D)Set the lease term sufficiently below the estimated economic life of the leased property such that the economic life test is not met.

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Definitions:

Chinese Residents

People living in China, including citizens, expatriates, and permanent residents, diverse in culture, language, and social practices.

Hong Kong

A special administrative region of China, known for its vibrant cityscape, deep natural harbor, and extensive financial and trading centers.

Academic Locus of Control

A psychological construct that determines whether individuals attribute their educational success or failure to internal factors like effort, or external factors like luck.

Online College

Educational institutions that offer courses and degree programs through the internet, providing flexibility to study from anywhere.