As Per FASB 13, Which of the Following Is a Rule

question 39

Multiple Choice

As per FASB 13, which of the following is a rule for a lease to qualify as an operating lease?

• A)There is a transfer of ownership at lease expiration.
• B)There is a bargain purchase option.
• C)The lease term is for over 75% of the asset's economic life.
• D)The present value of lease payments is less than 90% of the fair market value at lease origination.

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Definitions:

Independent Variable

A variable that is manipulated or changed in an experiment to see if it has an effect on the dependent variable.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1, where 1 means a perfect positive relationship, -1 means a perfect negative relationship, and 0 means no relationship.

Variables

Elements or factors that can change and affect the outcomes of scientific research or experiments.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together, showing the strength and direction of their relationship.