SFAS No 13 Identifies Four Capitalization Tests That Are Now Applicable

question 1

True/False

SFAS No. 13 identifies four capitalization tests that are now applicable to both lessees and lessors.

---

Definitions:

Bonded Employees

Employees who have been guaranteed by a bonding company against theft or misconduct, offering protection to the employer.

Cash Over and Short

An account that records any discrepancies between physical cash and the recorded amount, used to track overages and shortages.

Petty Cash Transactions

Small amounts of cash kept on hand for making immediate payments for miscellaneous small expenses.

Computerized Accounting System

Software used to manage and record accounting transactions, improving efficiency and accuracy.