Which of the Following Is Not Among the Criteria for Classifying

question 341

Multiple Choice

Which of the following is not among the criteria for classifying a lease as a capital lease?

• A)The present value of the minimum lease payments is greater than or equal to 75% of the fair value of the asset.
• B)The noncancellable lease term is greater than or equal to 75% of the estimated economic life of the asset.
• C)The lease specifies that ownership of the asset transfers to the lessee.
• D)The lease contains a bargain purchase option.

---

Definitions:

Budget Deficit

occurs when a government's expenditures exceed its revenues during a specific period, leading to borrowing or debt accumulation.

Demand-for-loanable-funds

The desire or willingness of borrowers to take out loans at various interest rates, reflecting the demand for borrowing.

Vertical Axis

The y-axis in a graph, which typically represents the dependent variable in an equation or a chart.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage rate.