Which of the Following Would Be Excluded from Both the Minimum

question 61

Multiple Choice

Which of the following would be excluded from both the minimum lease payments and net lease liability at inception for the lessee?

• A) Lessee guarantee of residual.
• B) Bargain purchase option.
• C) Third party guarantee of residual.
• D) Annual lease payments

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Definitions:

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Cost Volume Profit Analysis

A managerial accounting technique used to analyze how changes in cost and volume affect a company's operating income and net income.

Unit Variable Costs

The costs that vary directly with the volume of production, such as materials and labor, on a per-unit basis.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, focusing on the cost causation.