Which of the Following Facts Would Require a Lessor to Classify

question 42

Multiple Choice

Which of the following facts would require a lessor to classify a lease as an operating lease?

• A)No important uncertainties exist about unreimbursable costs yet to be incurred by the lessor.
• B)The collectibility of the minimum lease payments is reasonably assured.
• C)The lease term is 75% of the estimated economic life of the leased property.
• D)The sum of the minimum lease payments is 90% of the fair value of the leased property to the lessor.

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Definitions:

Self-Confidence

The belief in one’s abilities or competence to accomplish tasks and face challenges.

Management Function

The actions and responsibilities involved in directing and controlling an organization or one of its units, typically involving planning, organizing, leading, and controlling.

Planning And Budgeting

The process involving the creation of strategies and allocation of resources to achieve financial goals and operational objectives.

Setting Timetables

The process of establishing schedules or deadlines for activities or events.