Which One of These Conditions Qualifies a Lease as a "Capital

question 73

Multiple Choice

Which one of these conditions qualifies a lease as a "capital lease?"

• A)The lease contains a bargain purchase price at the end of the lease.
• B)The lease must have a value of at least $10 million.
• C)The lease must have a life of 10 years.
• D)All of these options

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash, that can be used to fund business operations or investments.

Unit Of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, used as a standard for measurement of the same kind of quantity.

Economic Data

Information concerning the economy of a region or country, including information about production, consumption, employment, inflation, and GDP.

Total Assets

The sum of all resources owned by a company, valued at purchase price, including both current and long-term assets.