Case-Based Critical Thinking Questions Case 13-1 the Rainbow Trout Company

question 39

Multiple Choice

Case-Based Critical Thinking Questions Case 13-1 The Rainbow Trout Company specializes in developing software that is used by amateur and professional fishermen with a wide variety of needs. As such, the company often work on projects with constantly changing requirements. The Rainbow Trout Company maintains a database of clients. To search through this database, they use ____, a 4GL.

• A) SQL
• B) COBOL
• C) C
• D) Java

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Definitions:

Capital Lease

A capital lease is a lease in which the lessee records the leased asset as if it has been purchased, creating both an asset and a liability on the balance sheet.

Economic Life

The estimated period over which an asset is expected to be economically usable, both for its original purpose or for other purposes.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Lease Term

The fixed, non-cancellable period of time for which a lease is agreed upon between the lessee and the lessor.