Which of the Following Statements Regarding Leases Is FALSE

question 17

Multiple Choice

Which of the following statements regarding leases is FALSE?

• A)Leases may include early cancellation options that allow the lessee to end the lease early (perhaps for a fee).
• B)The cost of the lease will depend on the asset's residual value,which is its book value at the end of the lease.
• C)Leases may allow the lessee to trade in and upgrade the equipment to a newer model at certain points in the lease.
• D)Leases may contain buyout options that allow the lessee to purchase the asset before the end of the lease term.

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Definitions:

Relationships

The ways in which two or more parties are connected and interact with each other.

Distributive Issues

Concerns and topics subject to negotiation where the main focus is on the division of limited resources.

Relationship Negotiation

Relationship negotiation involves the process of discussing and coming to agreements within interpersonal relationships, balancing personal needs with those of the other party.

Future Decisions

Choices or judgments that will be made in a coming time, often involving considerations of anticipated circumstances, objectives, and consequences.