All of the Following Criteria Would Qualify a Lease as a Capital

question 111

Multiple Choice

All of the following criteria would qualify a lease as a capital lease EXCEPT:

• A)the present value of the lease payments equals 70% of the market value of the leased asset.
• B)the lease term is 80% of the asset's estimated useful life.
• C)the lease agreement contains a bargain purchase option.
• D)title to the leased asset transfers to the lessee at the end of the lease term.

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Definitions:

Voltage Spikes

Sudden increases in electrical voltage that can potentially cause damage to electronic devices and components.

Circuitry Damage

Damage to the electrical pathways in a device that can interrupt the flow of electricity and impair functionality.

Microprocessors

Small, powerful processors that perform calculations and manage the operations of a computer or specialized hardware device.

12-volt Chassis Voltage System

An electrical system in vehicles that operates on 12 volts, powering essential components like lights, ignition system, and accessories.