For Accounting Purposes, Which of the Following Conditions Would Not

question 39

Multiple Choice

For accounting purposes, which of the following conditions would not automatically cause a lease to be a financial lease?

• A) The lessee can purchase the asset for its fair market value at the end of the lease.
• B) The lease transfers ownership of the asset to the lessee by the end of the lease.
• C) The lease term is more than 75% of the asset's economic life.
• D) The PV of the lease payments is more than 90% of the asset's market value at lease inception.

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Definitions:

Neuroticism

Neuroticism is a personality trait characterized by sadness, moodiness, and emotional instability.

Schizoid Personality Disorder

A personality disorder characterized by a long-term pattern of detachment from social relationships and a range of emotions, leading to a preference for solitary activities.

Neuroticism

A personality trait associated with a higher tendency towards anxiety, sadness, worry, and other negative emotional states.

Conscientiousness

A quality that shows someone's knack for organization, reliability, and a deep dedication to responsibilities.