Which Type of Lease Will NOT Increase a Company's Assets

question 36

Multiple Choice

Which type of lease will NOT increase a company's assets or long-term liabilities?

• A)An operating lease.
• B)A capital lease.
• C)A lease that contains a bargain purchase option.
• D)A lease that transfers title of the leased asset to the lessee at the end of the lease term.

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Definitions:

Spreading Activation

A theory in cognitive science suggesting that thoughts and ideas in memory are connected; activation of one concept triggers nearby or related concepts.

Visuospatial Sketchpad

A rehearsal system that holds and analyzes visual and spatial information.

Phonological Loop

A component of working memory model that deals with auditory information, holding and rehearsing speech-based information.

Atkinson and Shiffrin Model

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes how information flows through three stages: sensory memory, short-term memory, and long-term memory.