Which One of the Following Conditions Is Not a Single

question 1

Multiple Choice

Which one of the following conditions is not a single requirement for verifying a financial lease according to Canadian accounting standards?

• A)There is reasonable assurance of asset title transfer at the end of the lease
• B)The lessee will receive all or most of the asset's economic benefits
• C)The lessor is guaranteed a profit on the lease equal to that of other investments
• D)The lessor recovers the fair market value of the asset at the time of signing the lease, plus a return on that investment

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Definitions:

Liquidity-Basis

A measurement or approach focusing on how quickly assets can be converted into cash without affecting their value.

Transactions Recorded

The process of documenting financial or commercial activities to maintain an accurate account of business operations.

Accounting Equation

A fundamental principle in finance representing the relationship: Assets = Liabilities + Equity.

Assets

Resources owned or controlled by a company, expected to produce future economic benefits.