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

question 133

Multiple Choice

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

• A)transfer of ownership to the lessee 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 70 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:

Saving

The act of setting aside a portion of current income for future use, either by holding it as cash or putting it into investment accounts.

Disposable Income

Financial allotment for households' saving and spending requirements after income tax subtractions.

MPC

Marginal Propensity to Consume refers to the fraction of any additional income that is used for consumption purposes.

Consumption

The act of households utilizing goods and services.