Which of the Following Statements Regarding Finance Leases Is True

question 48

Multiple Choice

Which of the following statements regarding finance leases is true?

• A) The lease is cancellable.
• B) The lease is for the majority of the useful life of the asset.
• C) Interest and depreciation are expenses of the lessor.
• D) The lease payments are treated as ownership costs.

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Definitions:

Economic Insecurity

The condition of lacking stable financial resources or income, creating uncertainty and risk regarding an individual's or household's well-being and future.

Working Class

A social group consisting of people employed in lower tier jobs, often involving manual labor and receiving lower pay.

Selective Recruitment

The process of targeting specific individuals or groups for recruitment based on predetermined criteria.

Statistical Discrimination

The practice of making decisions about groups of people based on statistical generalizations, rather than individual merit, often leading to unfair outcomes.