Which of the following is a true statement regarding APB Opinion No. 5?
a. It took a legalistic approach to determining whether a lease was in substance a purchase.
b. The stated objective was to clarify ARB 38, not change it.
c. Cancellability was viewed as mitigating the executory nature of lease contracts.
d. It greatly increased the number of leases that were capitalized.
ANSWER: B
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