All of the Tests or Conditions Identified in SFAS No

question 49

True/False

All of the tests or conditions identified in SFAS No. 13 must be met before a lease can be capitalized.

---

Definitions:

Ordinary Simple Interest

Interest calculated on the principal amount only, not on accrued interest over time.

360-Day Year

A simplified accounting method where each month is considered to have 30 days, resulting in a year total of 360 days, used in financial calculations.

Loan Period

The duration over which a borrower agrees to pay back a loan to the lender, typically expressed in months or years.

Ordinary Simple Interest

Interest calculated on the principal amount only, without compounding, usually over a period of a year or less.