Which of the Following Is/are Not One of the Conditions

question 79

Multiple Choice

Which of the following is/are not one of the conditions of a capital lease?

• A)transfer of ownership to the lessor at the end of the lease term
• B)transfer of ownership to the lessee appears likely because of a "bargain" purchase option
• C)lease extends for at least 75 percent of the asset's life
• D)present value of the minimum contractual lease payments equals or exceeds 90 percent of the fair market value of the asset at the time the lessee signs the lease
• E)all of the above

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.

Fixed Order Interval

A replenishment method where orders are placed at fixed intervals, ensuring a periodic review and stock refill.

EOQ Model

Economic Order Quantity Model, an inventory management tool used to determine the optimal order size that minimizes total inventory costs including holding and ordering costs.

SKUs

Stock Keeping Units, a unique identifier for each distinct product and service that can be purchased.