Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)The lease-equivalent loan is the loan that is required on the purchase of the asset that leaves the purchaser with the same obligations as the lessor would have.
• B)Lease obligations themselves could trigger financial distress.
• C)When a firm enters into a lease,it is committing to lease payments that are a fixed future obligation of the firm.
• D)When a firm leases an asset,it is effectively adding leverage to its capital structure (whether or not the lease appears on the balance sheet for accounting purposes).

---

Definitions:

Completely Controlled

Refers to a scenario, system, or process where all aspects and outcomes are fully managed and regulated, leaving no room for external or unintended variations.

Ad-supported App

A software application that is free to users but generates revenue for its developers through the display of advertising.

In-app Purchases

Transactions made within a mobile app or software to buy additional features, content, or services.

Smartphone

A mobile phone that combines cellular and mobile computing functions into one unit, equipped with internet access and various apps.