USGAAP and IFRS Provide Criteria for Distinguishing Operating Leases from Capital

question 88

Multiple Choice

U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is true?

• A)Firms cannot currently apply the fair value option to capital leases.
• B)When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.
• C)When the lessee enjoys the benefits and bears the risk, the lease is a capital lease.
• D)IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk.
• E)all of the above

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Definitions:

Attractive People

Individuals who are generally considered pleasing or appealing to look at by societal standards.

Less Attractive

The subjective evaluation of an individual or item as being less appealing, desirable, or pleasing in appearance compared to others.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Actor-observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their internal characteristics.