Which of the Following Is Incorrect with Regard to Short-Term

question 63

Multiple Choice

Which of the following is incorrect with regard to short-term leases?

• A)When a company signs a short-term lease it does not record a lease liability.
• B)A short-term lease is for 12 months or less,excluding expected renewals and extensions.
• C)When a company signs a short-term lease there is no entry at the time the lease is signed.
• D)A short-term lease does not contain a bargain purchase option.

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Definitions:

Fishery

An area with a naturally occurring population of aquatic species which can be harvested for economic purposes.

Marine Animal

An animal that inhabits the ocean or other marine environments.

User Cost

The economic cost of using a resource today, which considers the lost opportunity of using it in the future.

Energy

The capacity to do work, manifested in physical forms such as heat, light, motion, and chemical energy, crucial to all aspects of life and industry.