Which of the Following Is NOT a Requirement of a Capital

question 68

Multiple Choice

Which of the following is NOT a requirement of a capital lease?

• A)Ownership does not transfer at lease end.
• B)The agreement has a bargain purchase option.
• C)The lease must cover at least 75% of asset's useful life.
• D)The present value of lease payments must be 90% or more of market value of asset.

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Definitions:

Reward

The benefit, recognition, or compensation received as a result of completing a task or achieving a goal.

Complementary Skills

Abilities that enhance or complete each other when combined, improving team performance or project outcomes.

Diverse Backgrounds

Refers to the variety of experiences, cultures, and characteristics that individuals bring into a group or organization.

Keep Promises

The act of fulfilling commitments or agreements made to others, essential for building trust and reliability.