Which of the following is not one of the lease classification tests?
A) Transfer of ownership
B) Collectibility
C) Purchase option
D) Lease term

Question

Quizplus · Accepted Answer

Collectibility is not a lease classification test; it pertains to the likelihood of collecting lease payments and does not directly affect the classification of a lease as either finance or operating. The other options (transfer of ownership, purchase option, and lease term) are considered in determining the classification of a lease.

Which of the Following Is Not One of the Lease