Which of the following represents the “transfer of the benefits and risks of ownership” approach to capital leases?
a. Limit capital leases to leases that are virtually conditional sales agreements with installment payments.
b. Capitalize leases where a purchase equivalent has occurred.
c. The lease treatment is the same for lessor and lessee.
d. Capitalize leases that are not true leases.
ANSWER: B
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Which of the following statements about call centers in the United States is true?
A. Call center functions have largely been returned to the U.S. from countries like India and Mexico. B. Call centers have replaced instant messaging as the technology of choice for resolving the complaints of younger customers. C. Call center functions have largely been brought back in-house from third-party companies that specialize in call center operations. D. There has been some shrinkage in the number and size of call centers due to the rise in self-service web or speech recognition technologies.
It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each
Indicate whether the statement is true or false
If a business operates in an industry that does not experience significant cost changes, should the business prepare its production cost report using the FIFO method or the weighted-average method?
Explain your answer.
Six months before filing for bankruptcy, Shirley sold her new car to her brother for $100 so that her creditors could not claim it. The market value of the car was $8,000 at the time of the sale. Under these circumstances, the transfer is ________.
A. voidable by the trustee because Shirley did not receive fair consideration for this transfer B. voidable by the creditors because it was done with intent to defraud the creditors C. not voidable because the transfer occurred between two relatives D. not voidable by the trustee because the transfer occurred 6 months before Shirley filed her bankruptcy petition