CumChan Is a Financial Services Firm

question 55

Multiple Choice

CumChan is a financial services firm.They need computer equipment and have decided to lease the equipment with an operating lease.They want to prevent additional debt from showing up on their balance sheet.Which of the following must be true about their lease for this to work?

• A)The lease term is equal to 65% or more of the economic life of the leased property
• B)The present value of the minimum lease payments is equal to 75% or more of the fair value of the leased property at the inception of the lease
• C)The present value of the minimum lease payments is equal to 90% or more of the fair value of the leased property at the inception of the lease
• D)The lease term is equal to 90% or more of the economic life of the leased property

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Definitions:

Muscle Efficiency

The effectiveness with which muscles convert energy (usually biochemical, such as ATP) into work or movement.

Graded Response

A response that varies directly with the strength of the stimulus, as seen in the incremental increase in a muscle's contraction strength in relation to stimulus intensity.

Lag Phase

One of the three phases of muscle contraction; time between the application of the stimulus and the beginning of muscular contraction; also called latent phase.

Muscle Twitch

Contraction of a whole muscle in response to a stimulus that causes an action potential in one or more muscle fibers.