Which of the Following Is Not a Criterion of a Capital

question 30

Multiple Choice

Which of the following is not a criterion of a capital lease?

• A) The lease transfers ownership of the property to the lessee by the end of the lease term.
• B) The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property, net of lessor's investment tax credit.
• C) The lease contains an option to purchase the leased property at a bargain price.
• D) The lease contains an option to renew.
• E) The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property.

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Definitions:

Self-Efficacy

refers to an individual’s belief in their own ability to complete tasks and achieve goals.

Self-Adulation

The act of excessive admiration or praise of oneself.

Self-Enhancement

A psychological process in which individuals seek to improve their self-image by acquiring and emphasizing positive feedback about themselves.

Narcissism

A personality trait characterized by an excessive focus on oneself, a high need for admiration, and a lack of empathy for others.