Final answer:
The lease term test includes criteria such as bargain purchase option, economic life, and alternative use to determine if a lease is a finance lease.
Step-by-step explanation:
The lease term test is a set of criteria used to determine whether a lease should be classified as a finance lease or an operating lease. According to the guidelines, if there is a bargain purchase option during the lease term, it is classified as a finance lease. Additionally, if the lease term is 75% or more of the economic life of the asset, it is considered a finance lease. However, if the asset has an alternative use during the lease term, it is not considered a finance lease. Finally, if the lease term is 90% or more of the economic life, it is classified as a finance lease.