The Terms of a Lease Are as Follows: Which

question 47

Multiple Choice

The terms of a lease are as follows: Which of the following is correct?

• A) This is an operating lease; the lessor should record the depreciation expense.
• B) This is a finance lease; the lessee should record the depreciation expense.
• C) This is an operating lease in which the lessor retains most of the ownership risk.
• D) This is a finance lease in which the lessor retains most of the ownership risk.

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Definitions:

Appellate Jurisdiction

The authority of a court to review and decide on appeals from the decisions of lower courts.

Original Jurisdiction

The power of a court to hear a case for the first time, as opposed to appellate jurisdiction.

Concurrent Jurisdiction

The situation where two or more courts from different systems simultaneously have jurisdiction over a specific case.

U.S. Courts of Appeals

A group of federal courts that review decisions made by district courts, regulatory agencies, and other federal courts, except the Supreme Court.