Which of the Following Is Not One of the Situations

question 14

Multiple Choice

Which of the following is not one of the situations provided in AASB 117 in relation to the classification of leases as finance leases?

• A)Losses from the fluctuation of the fair value of the asset accrue to the lessee.
• B)Leased assets are of a specialised nature.
• C)The lessee has provided a guarantee that they will acquire the asset at the end of the lease term.
• D)The lease is for a major part of the economic life of the asset.

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Definitions:

Consistent

In the context of systems of equations, a property indicating that the system has at least one solution.

Inconsistent

Describes a system of equations that has no solution because the equations represent parallel lines which never intersect.

Graph

A schematic that depicts a setup of ties or connections among multiple objects through distinctive indicators like dots, lines, and bars.

Ordered Pairs

Ordered pairs are pairs of numbers used to represent the position of a point on a coordinate plane, typically in the form (x, y).