Which of the Following Is $\underline{not}$ A Characteristic of a True Lease?
A)Government Agencies Recognized the True

question 64

Multiple Choice

Which of the following is $\underline{not}$ a characteristic of a true lease?

• A)Government agencies recognized the lessee as the owner of the leased asset.
• B)The rentals charged under leasing plans without an option to purchase approximate the rentals charged under plans with such an option.
• C)The lessor retains the right to inspect the equipment during the term of the lease.
• D)There is no mention of interest as a factor in rental charges.

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Definitions:

Externality Problems

Issues arising from the impact of one person's actions on the well-being of a bystander, which are not reflected in market prices.

Marginal Benefit

The extra pleasure or advantage obtained from acquiring or generating an additional unit of a product or service.

Tax Cost

The economic expense associated with the imposition of taxes, including the burden on consumers or producers.

Resources Allocation

It involves distributing available resources among various competing needs or projects in order to achieve desired objectives or optimize outcomes.