Which of the Following Items Would Be Classified as Committed

question 21

Multiple Choice

Which of the following items would be classified as committed resources (long-term) ?

• A)salaried employees
• B)depreciation on building
• C)lease on machinery
• D)both b and c

---

Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not transfer ownership of the asset to the lessee, often with shorter terms.

Lease Asset

An asset that is subject to a lease agreement, where the lessee has the right to use the asset for the lease term.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, reflecting its financial position.

Bargain Purchase Option

A feature in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.