Which of the Following Is Not a Criterion of a Capital

question 30

Multiple Choice

Which of the following is not a criterion of a capital lease?

• A) The lease transfers ownership of the property to the lessee by the end of the lease term.
• B) The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property, net of lessor's investment tax credit.
• C) The lease contains an option to purchase the leased property at a bargain price.
• D) The lease contains an option to renew.
• E) The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property.

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Definitions:

Substance Use

The consumption of drugs, alcohol, or other chemical substances, which can range from moderate use to dependency.

Peer Behavior

The actions and conduct exhibited by individuals within a peer group, which can influence the behavior of others within the group.

Alcohol Abuse

The harmful consumption of alcohol substances to the degree that it affects one's health, social, or economic functioning.

Frontal Cortex

The region of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.