A Lease Where Ownership of the Asset Transfers to the Lessee

question 87

Multiple Choice

A lease where ownership of the asset transfers to the lessee at the end of the lease for a nominal cost is called a:

• A)fair market value cap lease.
• B)fixed price lease.
• C)$1.00 out lease.
• D)fair market value lease.
• E)synthetic lease.

Understand the timing and approach for transferring funds to a project account.

Recognize the importance of revisiting the selection decision when cost estimates are higher than expected.

Comprehend that cost estimating can be adjusted based on project complexity.

Acknowledge the need to review the estimating method when estimates are rarely exceeded.