Which of the Following Are Characteristics of Financial or Capital

question 36

Multiple Choice

Which of the following are characteristics of financial or capital leases?

• A) I and II
• B) II and III
• C) I and III
• D) I, II and III
• I.The lease term is equal to 75 percent or more of the economic life of the leased property.
• II.The present value of the minimum lease payments is equal to 70 percent or more of the fair value of the leased property at the inception of the lease.
• III.Provisions are made such that ownership of the leased property is transferred to the lessee at the end of the lease term.

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Definitions:

Auditory Nerve

The nerve that carries signals from the inner ear to the brain, allowing us to process sounds.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, aiding in the process of hearing.

Auditory Cortex

A region of the brain located in the temporal lobes that is responsible for processing auditory information.

Cochlea

A spiral-shaped, fluid-filled inner ear structure vital for hearing, as it transforms sound into nerve impulses.