Which Statement Is Not True

question 101

Multiple Choice

Which statement is not true?

• A)If a lease is a capital lease because of a bargain purchase option, the leased asset should be depreciated over the life of the asset, not the life of the lease.
• B)The lessee ignores unguaranteed residual value in the measurement of the lease obligation.
• C)If there is a bargain purchase option, the lessor does not consider an unguaranteed residual value in measuring the lease receivable at the date of lease signing.
• D)In direct financing leases, the net investment in the lease should be adjusted each year by material changes (increases or decreases)in estimated unguaranteed residual values.

Analyze the impact of price discrimination on monopolist's profits and consumer surplus.

Distinguish between different market structures including perfect competition, monopolistic competition, oligopoly, and monopoly.

Identify the effects of barriers to entry on market structures and competition.

Understand the relationship between economies of scale, natural monopolies, and market control.

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