The Lessee in a Capital Lease Capitalizes the Asset If

question 161

True/False

The lessee in a capital lease capitalizes the asset if it meets only one of the four criteria.

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Definitions:

Cash Discounts

Discounts earned by buyers who pay bills within a stated period.

Sterling Industries

A fictitious or placeholder name that could refer to a company involved in manufacturing, technology, or another sector.

Net 30

A payment term that indicates the invoice amount must be paid in full within 30 days from the invoice date.

Cloud Technology

A network of remote servers hosted on the Internet to store, manage, and process data, rather than on a local server or personal computer.