Which of the Following Statements Regarding Operating Leases Is FALSE

question 24

Multiple Choice

Which of the following statements regarding operating leases is FALSE?

• A)They are also called finance leases.
• B)The lease is viewed as a rental for accounting purposes.
• C)The lessee reports the entire lease payment as an operating expense.
• D)They are disclosed in the footnotes of the lessee's financial statements.

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Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond's face value by the bond's issuer, representing the interest income received by bondholders.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Capital Gain Yield

The price appreciation component of a stock's total return, excluding dividends, expressed as a percentage of the initial price of the stock.

Par Value

The face value of a bond or stock, as specified by the issuing company, which does not necessarily reflect its market value.