A Lessee Will Reassess Variable Lease Payments That Depend on an Index

question 46

Multiple Choice

A lessee will reassess variable lease payments that depend on an index or a rate:

• A) Only when the lessee remeasures the right-of-use asset and lease liability for other reasons.
• B) Only when the lessor also reassesses the variable lease payments.
• C) Whenever there is a change in the cash flows resulting from a change in the reference index or rate.
• D) Never.

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Definitions:

Tobacco Products

Items made wholly or in part from the tobacco plant and are intended for human consumption, including but not limited to cigarettes, cigars, pipe tobacco, and chewing tobacco.

Jurisdiction

The authority given to a legal body, such as a court, to administer justice within a certain geographic area or over certain types of legal cases.

Public Health Cigarette Smoking Act

A 1970 law in the United States that banned cigarette advertisements on television and radio.

Smokeless Tobacco Health Education Act

A federal law enacted in the United States to regulate the advertising and promotion of smokeless tobacco products and to mandate health warnings.