Which of the following is not one of the capitalization tests now applicable to both lessees and lessors?

Question

Quizplus · Accepted Answer

The correct answer is D because the capitalization tests for leases typically include criteria such as title passing to the lessee, a bargain purchase option, and the lease term being a significant portion of the asset's useful life. The non-cancellability of a lease for a long term is not specifically one of the capitalization tests; rather, the focus is on the economic substance of the transaction, such as the transfer of ownership or a lease term that covers the majority of the asset's useful life.

Which of the Following Is Not One of the Capitalization