Which of the Following Facts Would Preclude a Lessor from Classifying

question 137

Multiple Choice

Which of the following facts would preclude a lessor from classifying a lease as a sales-type or direct financing lease?

• A) The undiscounted sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.
• B) The collectibility of the minimum lease payments is reasonably assured.
• C) The lease term is 90% of the estimated economic life of the leased property.
• D) No important uncertainties exist about unreimbursable costs yet to be incurred by the lessor.

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Definitions:

Self-actualization

The process of realizing and fulfilling one's own potential and abilities, often considered the highest level of psychological development in Maslow's hierarchy of needs.

Self-esteem

Self-esteem is an individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states.

Ostracism

The exclusion or rejection of an individual from a social or professional group, leading to feelings of isolation.

Narcissism

A personality trait characterized by an inflated self-image, a deep need for admiration, and a lack of empathy for others.