Which of the Following Statements Regarding Capital Leases Is FALSE

question 37

Multiple Choice

Which of the following statements regarding capital leases is FALSE?

• A)Because capital leases increase the apparent leverage on the firm's balance sheet,firms sometimes prefer to have a lease categorized as an operating lease to keep it off the balance sheet.
• B)The firm does not report the present value of the future lease payments as a liability on the balance sheet.
• C)The asset acquired is listed on the lessee's balance sheet,and the lessee incurs depreciation expenses for the asset.
• D)They are viewed as an acquisition for accounting purposes.

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Definitions:

Population

A group of individuals of the same species living in a specific area who interbreed.

Artificial Selection

The selection by humans of traits that are desirable in plants or animals and breeding only those individuals that have the desired traits. Compare with natural selection.

Broccoli

A green vegetable, belonging to the cabbage family, known for its high nutrient content and health benefits.

Kohlrabi

A vegetable in the cabbage family, with a bulbous stem that tastes similar to broccoli stems but sweeter. It can be eaten raw or cooked.