The four criteria provided in FASB Statement No. 13 for distinguishing a capital lease from an operating lease do not include:
A)The agreement specifies that ownership transfers at the end of the lease term.
B)The collectibility of the lease payments must be reasonably predictable.
C)The agreement contains a bargain purchase option.
D)The noncancelable lease term is 75% or more of the useful life of the leased asset.

Question

Quizplus · Accepted Answer

The collectibility of the lease payments being reasonably predictable is not one of the four criteria outlined in FASB Statement No. 13 for distinguishing a capital lease from an operating lease. The criteria focus on ownership transfer, bargain purchase option, lease term, and present value of lease payments.

The Four Criteria Provided in FASB Statement No