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:

Theodor Schwann

A German physiologist who co-founded the cell theory, stating that all living things are made up of cells.

Prokaryotic Cell

A simple, single-celled organism without a nucleus or other membrane-bound organelles, such as bacteria and archaea.

Eukaryotic Cell

A type of cell that contains a nucleus enclosed within membranes, distinguishing it from prokaryotic cells. Eukaryotes include all living organisms except bacteria and archaea.

Ribosomes

are small, spherical complexes of RNA and protein that are the sites of protein synthesis within cells.