If a Leased Asset Has Maintenance Offered as an Included

question 57

Multiple Choice

If a leased asset has maintenance offered as an included extra, such an extra would be evaluated differently from other leasing cash flows in this way.

• A)maintenance would be estimated over shorter time intervals than the lease.
• B)maintenance would represent an extra cost to the lessee.
• C)maintenance would be discounted at a higher discount rate to reflect risk, and represent a cash inflow for lessee.
• D)maintenance would all be paid up front.

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Definitions:

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, often requiring medical diagnosis and treatment.

Mental Disorder

A condition affecting a person's thinking, feeling, behavior, or mood, significantly impacting daily functioning.

Severe Disorder

A serious mental or physical condition that significantly interferes with an individual's daily life and functioning.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person, often based on stereotypes or prejudice.