Which Factor Would Contribute Toward the Lessor Classifying a Lease

question 15

Multiple Choice

Which factor would contribute toward the lessor classifying a lease as a financial lease?

• A) Lessor retains risk of breakage to leased asset.
• B) Lessor has reward of high resale value.
• C) Lessor does not have risk of change in demand for the leased asset.
• D) Lessor does not have guaranteed residual value.

---

Definitions:

Revolutionary War

The conflict between the Thirteen American colonies and British government that led to the independence of the United States, occurring from 1775 to 1783.

Concrete Step

A specific, actionable measure taken to achieve a particular goal or to implement a plan.

Financial Compensation

Payment provided to someone in exchange for an injury, loss, or the performance of a service or job.

Freedom Petitions

Arguments for liberty presented to New England’s courts and legislatures in the early 1770s by enslaved African-Americans.