Which of the Following Is Not Among the Criteria for Classifying

question 4

Multiple Choice

Which of the following is not among the criteria for classifying a lease as a capital lease?

• A)The agreement specifies that ownership of the asset transfers to the lessee.
• B)The agreement contains a bargain purchase option.
• C)The noncancelable lease term is equal to 90% or more of the expected economic life of the asset.
• D)The present value of the minimum lease payments is equal to or greater than 90% of the fair value of the asset.

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Definitions:

Evolutionary Change

The pathway through which multiple categories of living beings are believed to have advanced and diversified from primitive forms during the chronological history of Earth.

Fully Aquatic

Pertains to organisms that spend their entire life cycle living in water.

Baleen

A filter-feeding system inside the mouths of baleen whales, it consists of keratin plates for filtering small food items from water.

Dorudon

An extinct genus of medium-sized whales that lived approximately 40 to 33 million years ago.