Which of the following is not a criterion for classifying a lease as a finance lease, from the lessee's point of view?
A)The lease payments are more frequent than annually
B)Title to the lease passes to the lessee at the end of the lease
C)The lease term is for a major portion of the asset's economic life.
D)Present value of the minimum lease payments is equal to substantially all of the FV of the asset.

Question

Quizplus · Accepted Answer

The frequency of lease payments is not a criterion for classifying a lease as a finance lease. The criteria include transfer of ownership, the lease term being a major part of the economic life of the asset, and the present value of minimum lease payments being equal to substantially all of the asset's fair value.

Which of the Following Is Not a Criterion for Classifying