Which of the Following Is NOT One of the Situations

question 5

Multiple Choice

Which of the following is NOT one of the situations provided in AASB 117 in relation to the classification of leases as finance leases?

• A) Losses from the fluctuation of the fair value of the residual accrue to the lessee
• B) Leased assets are of a specialised nature
• C) The lessee has provided a guarantee that they will acquire the asset at the end of the lease term
• D) The lease is for a major part of the economic life of the asset.

---

Definitions:

Freshwater Algae

Simple, often microscopic, plant-like organisms that live in fresh water and are capable of photosynthesis.

Green Algae

A large group of algae, primarily aquatic, that contain chlorophyll and conduct photosynthesis.

Dinoflagellates

A group of protists known for their whirling movement, some of which are photosynthetic, found in marine and freshwater environments.

Two Flagella

A description of cells or organisms that have two long, slender projections used for movement.