All of the Following Statements Regarding Leases Are True Except

question 94

Multiple Choice

All of the following statements regarding leases are true except:

• A)For a capital lease the lessee records the leased item as its own asset.
• B)For a capital lease the lessee depreciates the asset acquired under the lease,but for an operating lease the lessee does not.
• C)Capital leases create a long-term liability on the balance sheet,but operating leases do not.
• D)Capital leases do not transfer ownership of the asset under the lease,but operating leases often do.
• E)For an operating lease the lessee reports the lease payments as rental expense.

---

Definitions:

Environmental Scanning

The process of gathering information about the external environment to identify and interpret potential trends.

Leadership

The act of guiding and directing a group towards achieving a common goal, often involving the ability to inspire and influence others.

Chief Executives

The highest-ranking executives in an organization, typically responsible for making major corporate decisions and overseeing the overall operation.

Organizational Processes

The set of activities, routines, procedures, and standards that are carried out within an organization to ensure its functioning and goal achievement.