Which of the Following Leases Is Just Like a Rental

question 113

Multiple Choice

Which of the following leases is just like a rental?

• A)An operating lease.
• B)A capital lease.
• C)Both an operating and a capital lease.
• D)Neither an operating lease nor a capital lease.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that has a feature where missed dividend payments accumulate and must be paid out before dividends can be issued to other stock types.

Outstanding Shares

Represents the total shares of a corporation’s stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash.

Market Value

The contemporary rate at which a marketplace allows the purchase or sale of an asset or service.