Which of the Following Is a Contingency of Power

question 82

Multiple Choice

Which of the following is a contingency of power?

• A) Legitimate
• B) Referent
• C) Visibility
• D) All of these are contingencies of power
• E) None of these are contingencies of power

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Definitions:

Capital Lease

A lease agreement that transfers substantially all the risks and rewards of ownership of the asset to the lessee, and is recorded as an asset and liability on the balance sheet.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, rules, and procedures used in the compilation of financial statements in the US.

Lease Capitalization Criteria

The standards or requirements used to determine whether a lease should be recorded as an asset and liability on the balance sheet.

Operating Leases

Leasing agreements where the lessor retains ownership of the asset, and the lessee pays for the right to use the asset for a specific period without gaining ownership.