Which One of the Following Would Cause a Lease to Be

question 69

Multiple Choice

Which one of the following would cause a lease to be accounted for as a capital lease?

• A)The lease payments are greater than $10,000 per month.
• B)The leased property is located on premises owned by the lessee.
• C)The lease term is more than 75% of economic life of the property.
• D)The value of the leased property is greater than 10% of the net assets of the lessee.

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Definitions:

Referent Power

Influence held by an individual due to loyalty, admiration, or respect from others rather than formal authority or position.

Influence Attempts

Actions or behaviors aimed at persuading or convincing others to follow a certain course of action or adopt specific beliefs.

Withhold Access

The act of denying or restricting availability to certain resources, information, or locations.

Information

Data, facts, or details that are provided or learned about something or someone.