Which of the Following Is NOT a Requirement of a Capital

question 68

Multiple Choice

Which of the following is NOT a requirement of a capital lease?

• A)Ownership does not transfer at lease end.
• B)The agreement has a bargain purchase option.
• C)The lease must cover at least 75% of asset's useful life.
• D)The present value of lease payments must be 90% or more of market value of asset.

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Definitions:

Intrinsic

Referring to something that is inherent or essential to the nature of something else, often used to describe values or properties that are an integral part of an object or concept.

Extrinsic

Not inherent or essential, coming from the outside, or external to something.

Heisenberg Uncertainty Principle

A fundamental theory in quantum mechanics stating that it is impossible to simultaneously determine both the position and momentum of a particle with absolute precision.

Rational Freedom

The ability to make choices based on reasoning and logical deliberation, free from irrational forces or constraints.