AKP Enterprises Have Negotiated a Lease for a Photocopier

question 2

True/False

AKP enterprises have negotiated a lease for a photocopier. The useful life of the asset is eight years. The lease is non-cancellable and provides that the term of the lease is over three years with the present value of the lease payments being 55% of the fair value. Title will not pass at the end of the lease period. Using the criteria in AASB 117, the lease would definitely constitute a finance lease.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus.

Conditioned Stimulus (CS)

A previously neutral stimulus that eventually elicits a conditioned response after being paired with the unconditioned stimulus.