An Eight-Year Capital Lease Specifies Equal Minimum Annual Lease Payments

question 66

Multiple Choice

An eight-year capital lease specifies equal minimum annual lease payments.Part of this payment represents interest and part represents a reduction in the net lease liability.The portion of the minimum lease payment in the fourth year applicable to the reduction of the net lease liability should be

• A) the same as in the third year.
• B) less than in the third year.
• C) less than in the fifth year.
• D) more than in the fifth year.

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Definitions:

Age Discrimination

Unfair treatment of individuals in employment or other areas based on their age.

ADEA

The Age Discrimination in Employment Act (ADEA) is a U.S. federal law aimed at protecting workers and job applicants aged 40 and over from age-based discrimination in the workplace.

Overqualified

A term used to describe an individual whose education, experience, or skills exceed the requirements for a particular job position.

Employment-At-Will

A legal doctrine stating that an employment relationship can be terminated at any time by either the employer or the employee, for any reason that is not illegal.