Of the Four Criteria for a Capital Lease,the One That

question 84

Multiple Choice

Of the four criteria for a capital lease,the one that most often is the decisive criteria is:

• A)The 75% of economic life test.
• B)The transfer of title.
• C)The 90% of fair value test.
• D)The bargain purchase option.

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Definitions:

Cash Dividend

The distribution of some of a company's earnings to its shareholders as determined by the company's board of directors.

Waste Management System

A systematic approach to handling both disposal and recycling of waste materials in an environmentally friendly manner.

Liquidating Dividend

A type of dividend paid by a company to its shareholders from its capital rather than its earnings, often signaling the company is dissolving its assets.

Retained Earnings Restrictions

Limitations or constraints placed on the portion of earnings that are not distributed as dividends but kept within the company for reinvestment or other purposes.