FASB Standard No

question 114

Multiple Choice

FASB Standard No. 13 establishes requirements for the explicit disclosure of certain types of lease obligations on the firm's balance sheet. To qualify as a capital lease, any of the following elements may be present EXCEPT

• A) the lease transfers ownership of the property to the lessee by the end of the lease.
• B) the lease contains an option to purchase the property at a "bargain" price.
• C) the lease term is less than 75 percent of the economic life of the property.
• D) at the beginning of the lease, the present value of the lease payment is equal to 90 percent or more of the fair market value of the leased property less any investment tax credit received by the lessor.

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Definitions:

Valuing Process

The act of assessing and recognizing the importance, worth, or usefulness of something or someone in a particular context.

Values Drift

The gradual shift in the core beliefs, principles, and values of an individual or organization over time.

Legal And Ethical

Pertaining to the adherence to both the law and moral guidelines in decision-making processes to ensure fairness, justice, and integrity.

Safety Gear

Equipment designed to protect the wearer from injury or danger, especially in a work or activity environment.