The Criteria That Normally Need to Be Recognised for a Non-Cancellable

question 10

Multiple Choice

The criteria that normally need to be recognised for a non-cancellable lease to be capitalised by a lessee IAS 17/AASB 117) is:

• A)The lease term is for the major part of the economic life of the asset
• B)At the inception of the lease,the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset
• C)Both A and B
• D)Either A or B

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Definitions:

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its effect on the dependent variable.

Direction of Cause and Effect

Pertains to determining which variable influences the other in a cause-and-effect relationship.

Experimental Methods

Research designs involving the manipulation of variables to determine cause-and-effect relationships.

Nonexperimental Methods

Research designs that do not involve the manipulation of variables or random assignment of participants.