Under USGAAP,which of the Following Items Would Require a Lessee to to Classify

question 22

Multiple Choice

Under U.S.GAAP,which of the following items would require a lessee to classify a lease of equipment as a capital lease?

• A) There is no transfer of ownership to the lessee at the end of the lease term.
• B) The lease does not contain a bargain purchase option.
• C) The lease term is 90% of the estimated economic life of the lease property.
• D) The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.

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Definitions:

Freudian Concept

Refers to the theories and ideas proposed by Sigmund Freud that emphasize the influence of the unconscious mind, childhood experiences, and sexuality on personality and behavior.

Anal Stage

A phase in Freudian psychosexual development occurring from approximately 18 months to 3 years, characterized by pleasure in controlling bowel and bladder movements.

Psychosexual Development

Freud's theory suggesting human personality development occurs through stages during childhood, each characterized by sexual pleasure in parts of the body.

Freudian Theory

Freudian Theory proposes that human behavior is influenced by unconscious desires, memories, and conflicts.