For the Lessor to Recognize a Lease as a Sales-Type

question 4

Multiple Choice

For the lessor to recognize a lease as a sales-type lease,under SFAS No.13,the following must occur.

• A)At least one of the capital lease criteria is met,at least one of the certainty criteria is met,and there is a manufacturer or dealer's profit.
• B)At least one of the capital lease criteria is met,both certainty criteria are met,and there is a manufacturer or dealer's profit.
• C)More than one of the capital lease criteria are met,both certainty criteria are met,and there is a manufacturer or dealer's profit.
• D)Only one of the capital lease criteria is met,both certainty criteria are met,and there is a manufacturer or dealer's profit.

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Definitions:

Network Theory

A theoretical framework that analyzes social, economic, or natural phenomena in terms of nodes and the connections between them, emphasizing the importance of relationships and interactions.

Rational Choice Theory

An economic principle that assumes individuals always make decisions that provide them with the highest level of personal utility.

Positivism

A philosophical theory stating that certain ("positive") knowledge is based on natural phenomena and their properties and relations as verified by the empirical sciences.

Rational Actors

Individuals or entities that make decisions based on logical reasoning, often within the context of economic theory, aiming to maximize utility or benefit.