GAAP Requires That Some Lease Agreements Be Accounted for as Purchases.The

question 126

Multiple Choice

GAAP requires that some lease agreements be accounted for as purchases.The theoretical justification for this treatment is that a lease of this type:

• A)Complies with the concept of form over substance
• B)Reflects the relationship of cause and effect
• C)Satisfies the concept of historical cost
• D)Conveys most of the benefits of property ownership.

---

Definitions:

Negative Affectivities

Emotional states or attitudes characterized by negativity, including feelings of distress, dissatisfaction, and pessimism.

Bottom-Line Views

Perspectives typically focused on financial outcomes, emphasizing profits, costs, and overall economic performance.

Role Ambiguity

A condition in which employees are uncertain about their job duties, responsibilities, and expectations.

Uncivil Behavior

Acts of rudeness, disrespect, or aggression in the workplace, undermining the professional and respectful environment.