An Operating Lease

question 98

Multiple Choice

An operating lease

• A) has a lease term equal to 75% or more of the estimated property.
• B) is usually short-term and is often cancelable at the option of the lessee.
• C) must show up on the balance sheet.
• D) none of these.

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Definitions:

Insolvent

A financial state in which an individual or organization is unable to pay off debts as they become due.

Stoppage in Transitu

Interruption or halt of the transportation of goods before they reach their final destination, typically due to legal or logistical issues.

Good Faith

An honest intention to act without taking an unfair advantage over another party, often underlying contractual obligations.

Implied Condition

A term in a contract that is not expressly stated but is assumed to exist to fulfill the contract's purpose.