Which of the Following Costs Are Excluded from a Minimum

question 107

Multiple Choice

Which of the following costs are excluded from a minimum lease payment?

• A) a guaranteed residual value
• B) a bargain purchase option
• C) executory costs
• D) a penalty for failure to renew the lease

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Definitions:

Intercept

In the context of linear regression, this represents the expected value of the dependent variable when all independent variables are zero; it is the point at which the regression line crosses the y-axis.

Least-squares Regression Line

The least-squares regression line minimizes the squared differences between observed and predicted values, providing the best fit line through data points.

Forbes 500 List

An annual list published by Forbes magazine that ranks the top 500 U.S. companies based on their revenue.

Residual

The difference between an observed value and the value predicted by a model.