Which of the Following Is Not Among the Criteria for Classifying

question 4

Multiple Choice

Which of the following is not among the criteria for classifying a lease as a capital lease?

• A)The agreement specifies that ownership of the asset transfers to the lessee.
• B)The agreement contains a bargain purchase option.
• C)The noncancelable lease term is equal to 90% or more of the expected economic life of the asset.
• D)The present value of the minimum lease payments is equal to or greater than 90% of the fair value of the asset.

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Definitions:

Market Needs

The specific requirements or demands of a target market that businesses aim to satisfy with their products or services.

Marketing Program

A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

Market Segmentation

Market segmentation is the process of dividing a market into distinct groups of buyers based on different needs, characteristics, or behaviors, who might require separate products or marketing strategies.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net profit by the initial cost.