Alfredo Has a Non-Cancelable,five Year Lease on an Industrial-Grade Sewing

question 66

Multiple Choice

Alfredo has a non-cancelable,five year lease on an industrial-grade sewing machine for stitching upholstery.For accounting purposes,this is considered to be a capital lease.The life of the sewing machine is five years.Alfredo must pay all taxes and insurances related to this lease.Which type of lease does Alfredo have on this sewing machine?

• A)open
• B)straight
• C)operating
• D)financial
• E)tax-oriented

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