Reference no: EM132632766

Question 1: Which of the following is a characteristic of an operating lease?

Group of answer choices

Option 1: The term of the lease is at least 75% of the asset's estimated useful life.

Option 2: At the end of the lease, the lessee obtains ownership of the asset.

Option 3: At the end of the lease, the company has the opportunity to purchase the asset at its market value.

Option 4: The present value off the lease payments equals or exceeds 90% of the original cost of the asset.

Question 2: Which of the following is a characteristic of an operating lease?

Group of answer choices

Option 1: The term of the lease is at least 75% of the asset's estimated useful life.

Option 2: At the end of the lease, the lessee obtains ownership of the asset.

Option 3: At the end of the lease, the company has the opportunity to purchase the asset at its market value.

Option 4: The present value off the lease payments equals or exceeds 90% of the original cost of the asset.

Question 3: A company issues preferred stock that gives the shareholders rights to dividends. If the company does not pay any dividends in a given year, the preferred shareholders cannot claim those unpaid dividends in the future. What type of stock is this?

Group of answer choices

Option 1: Cumulative preferred stock.

Option 2: Convertible preferred stock.

Option 3: Non-cumulative preferred stock.

Option 4: Participating preferred stock.