Which of the Following Statements Concerning the Accounting for Leases

question 19

Multiple Choice

Which of the following statements concerning the accounting for leases is not true?

• A)The economic impact of a financing lease isn't really any different from buying the asset outright and signing a note payable that will be paid off, with interest, over the life of the asset.
• B)At the inception of a financing lease, the lessee's total assets and total stockholders' equity are both increased for the present value of the lease payments to be made over the life of the lease.
• C)Assets rented under a short-term operating lease are not reflected on the lessee's balance sheet, and the rent expense (or lease expense)involved is reported in the income statement as an operating expense.
• D)A financing lease results in the lessee assuming virtually all the benefits and risks of ownership of the leased asset.

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Definitions:

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Acute Stress Disorder

A disorder, like PTSD, that is characterized by feelings of anxiety and helplessness and caused by a traumatic event; acute stress disorder occurs within a month of the event and lasts from two days to four weeks.

Traumatic Event

A deeply disturbing or distressing experience that can lead to lasting psychological and emotional impact.

Dissociative Amnesia

Loss of memory of personal information that is thought to stem from psychological conflict or trauma.