Generally Accepted Accounting Principles Require That Certain Lease Agreements Be

question 2

Multiple Choice

Generally accepted accounting principles require that certain lease agreements be accounted for as purchases.The theoretical basis for this treatment is that a lease of this type

• A) effectively conveys all of the benefits and risks incident to the ownership of property.
• B) is an example of form over substance.
• C) provides the use of the leased asset to the lessee for a limited period of time.
• D) must be recorded in accordance with the concept of cause and effect.

---

Definitions:

Plant Cells

The basic structural and functional units of plants, distinguished by their cell wall, chloroplasts, and central vacuole.

Pigments

Substances that give color to living things, found in the skin, hair, eyes, plants, and many other parts of living organisms.

Mitochondrion

A double-membraned organelle found in most eukaryotic cells, central to the production of ATP (energy) through the process of cellular respiration.

Powerhouse

Colloquially refers to mitochondria, organelles in cells that produce energy through respiration and regulate cellular metabolism.