If a Leased Asset Has Maintenance Offered as an Included

question 21

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

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Definitions:

Contribution-based Justice

The principle that rewards and recognition should be based on the level of contribution an individual or group makes.

Blind Justice

A principle that justice should be impartial and not influenced by bias, prejudice, or the identity of the parties involved.

Confirmation Bias

The inclination to seek out, comprehend, prefer, and remember data in a manner that validates one's already established convictions or theories.

Tunnel Vision

describes a narrow focus on a single aspect or task, often leading to overlooking other important details or alternatives.