Which of the following is not a criterion for a lease to be recorded as a finance lease?(a) There is transfer of ownership.(b) The lease is cancelable.(c) The lease term is for the major part of the economic life of the asset.(d) There is a bargain-purchase option.
Which of the following is not a criterion for a lease to be recorded as a finance lease?(a) There is transfer of ownership.(b) The lease is cancelable.(c) The lease term is for the major part of the economic life of the asset.(d) There is a bargain-purchase option.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 2QTD
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Which of the following is not a criterion for a lease to be recorded as a finance lease?
(a) There is transfer of ownership.
(b) The lease is cancelable.
(c) The lease term is for the major part of the economic life of the asset.
(d) There is a bargain-purchase option.
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