If a Leased Asset Has Maintenance Offered as an Included

question 57

Multiple Choice

If a leased asset has maintenance offered as an included extra, such an extra would be evaluated differently from other leasing cash flows in this way.

• A)maintenance would be estimated over shorter time intervals than the lease.
• B)maintenance would represent an extra cost to the lessee.
• C)maintenance would be discounted at a higher discount rate to reflect risk, and represent a cash inflow for lessee.
• D)maintenance would all be paid up front.

---

Definitions:

Third-party Conflict

A dispute that involves an external individual or entity apart from the primary parties in a conflict.

Mediation

A conflict resolution method involving a neutral third party who assists the conflicting parties in reaching a mutually satisfactory agreement.

Process Control

A system of monitoring and adjusting the ways in which a process is conducted, especially in industrial production, to ensure optimal performance and output.

Process Control

Process control involves continuously monitoring and adjusting processes to maintain desired outcomes in manufacturing, production, or other operation systems.