Which of the following is NOT a criterion for classifying a lease as a finance lease, from the lessee's point of view?

Question

Quizplus · Accepted Answer

The frequency of lease payments is not a criterion for classifying a lease as a finance lease. The criteria for classifying a lease as a finance lease, from the lessee's point of view, are: (1) title to the leased asset transfers to the lessee by the end of the lease term; (2) the lease term is for a major portion of the asset's economic life; (3) the present value of the minimum lease payments, excluding any amounts for residual value guarantees, equals or exceeds substantially all of the fair value of the leased asset; and (4) the leased asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Which of the Following Is NOT a Criterion for Classifying