The Best Approach to Determine Whether a Capital Lease Has

question 38

Multiple Choice

The best approach to determine whether a capital lease has been "kept off the books" is to do which of the following?

• A)review all capital lease agreements that have been recorded.
• B)examine the canceled checks for all recorded capital leases.
• C)review all major lease agreements to determine whether there are other leases to be capitalized.
• D)physically examine the asset and trace it to the general ledger.

---

Definitions:

Charismatic Chief Executives

Leaders at the highest level of an organization who possess a magnetic personality and the ability to inspire and motivate others through their vision and personal appeal.

Positive Outcomes

Favorable results or effects that stem from specific actions or activities.

Essential Attribute

A fundamental or innate quality considered necessary for a particular role, function, or task.

Charisma

A compelling attractiveness or charm that can inspire devotion or enthusiasm in others.