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:

Gastrulation

Process in embryonic development during which the three germ layers (ectoderm, mesoderm, and endoderm) form.

Blastula

An early stage of embryonic development in animals, characterized by a spherical layer of cells (blastomeres) surrounding a fluid-filled cavity (blastocoel).

Morula

An early embryo consisting of a solid ball of cells.

Gastrula

A three-layered embryo formed by the process of gastrulation.