The CICA Distinguishes Two Types of Leases Based on the Lease

question 50

Multiple Choice

The CICA distinguishes two types of leases based on the lease terms,and this classification determines the lease's accounting treatment.The two types of leases are

• A) fixed leases and variable leases.
• B) long-term leases and short-term leases.
• C) operating leases and capital leases.
• D) temporary leases and permanent leases.

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Definitions:

Health And Safety

Regulations and practices designed to prevent accidents and injuries in workplaces and public environments.

Private Companies

Private companies are businesses owned by individuals or groups that do not trade their stock publicly on stock exchanges.

Public Companies

Companies whose shares are traded publicly on stock exchanges, allowing for wider ownership by investors.

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Breached or transgressed, referring to a situation where laws, rules, or agreements are not followed.