Which of the Following Are Specific Tests That the Canada

question 4

Multiple Choice

Which of the following are specific tests that the Canada Revenue Agency will apply to determine if a particular lease meets the definition of a capital lease? The lease term is equal to 75% or more of the economic life of the leased property.
The present value of the minimum lease payments is equal to 70% or more of the fair value of the leased property at the inception of the lease.
Provisions are made such that ownership of the leased property is transferred to the lessee at the end of the lease term.

• A)1 only
• B)1 and 2
• C)1 and 3
• D)2 and 3

Understand the principles of responsibility accounting and its role in organizational control.

Differentiate among cost centers, profit centers, and investment centers based on their scope of responsibility.

Grasp the concept of controllable and uncontrollable expenses in budgeting and performance evaluation.

Comprehend the significance of detailed versus summary reporting in managerial decision-making.