The Point at Which the Axes of a Graph Intersect

question 6

Multiple Choice

The point at which the axes of a graph intersect is called the:

• A)slope.
• B)origin.
• C)graph.
• D)intercept.

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay if, instead of leasing, they financed the purchase of an asset with a loan over a similar term.

Implicit Rate Of Interest

The interest rate embedded in a lease agreement, used to calculate the present value of lease payments and to establish the lease classification.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return or discount rate.

Lease Capitalization

The process of recording a lease as an asset and a corresponding liability on the balance sheet, reflecting the company's right to use an asset and obligation to make lease payments.