Which of the Following Does Not Apply to SFAS No

question 26

Multiple Choice

Which of the following does not apply to SFAS No. 13?

• A)It changed capitalization criteria.
• B)Non-cancellability and material equity were abandoned in favor of broader tests representing substantive transfers of ownership benefits and risks.
• C)It is intended to capitalize fewer leases than previous standards.
• D)It provides that the lessee use the lessor's implicit rate in the lease if it is obtainable and if the implicit rate is lower than the lessee's incremental borrowing rate.

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Definitions:

Total Profit

The overall financial gain made by a business after subtracting all expenses from the total revenue generated.

Herfindahl-Hirschman Index

A measure used to assess the level of market concentration and competition within an industry, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Concentration Ratio

A measure of the total market share that is controlled by a specified number of the largest firms in the industry.

Market Share

The portion of total industry revenue attributed to a specific company over a predetermined time frame.