Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)Most financial analysts and sophisticated investors consider operating leases (which must be listed in the footnotes of the financial statements)to be additional sources of leverage.
• B)By carefully avoiding the four criteria that define an operating lease for accounting purposes,a firm can avoid listing the long-term lease as a liability.
• C)Because a lease is equivalent to a loan,the firm can increase its actual leverage without increasing the debt-to-equity ratio on its balance sheet.
• D)For most large corporations,the amount of leverage the firm can obtain through a lease is unlikely to exceed the amount of leverage the firm can obtain through a loan.

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Definitions:

Distributions

In computing, it often refers to software distributions, which are collections of software packages that are distributed together, especially in the context of open-source Linux operating systems.

Windows Tool

Software or utilities designed to perform specific tasks or functions within the Microsoft Windows operating system.

Screen Display

The visual output display of a computer, smartphone, or other electronic devices, usually consisting of a screen or monitor.

Windows

A graphical operating system developed by Microsoft, providing a user-friendly interface for managing applications and files.