Which of the Following Statements Is Incorrect with Respect to Personal

question 35

Multiple Choice

Which of the following statements is incorrect with respect to personal property that becomes attached to real property?

• A) When such tangible personal property becomes attached, it becomes part of the real property.
• B) When such tangible personal property becomes attached to the real property, it is unlawful to remove it under any circumstances.
• C) The owner of real property has the right to detach a fixture if he so desires.
• D) When a tenant attaches tangible personal property to the real property he has rented in order to use it in his trade or profession, those trade fixtures can be removed when he leaves.
• E) When a person renting a home attaches a mirror to the wall to better use it, he can take that mirror with him when he leaves, providing no damage is done by removing it.

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Definitions:

Financial Statements

Documents that present the financial activities and conditions of a business or entity, including the balance sheet, income statement, and cash flow statement.

Basic Assumptions

Fundamental accounting principles that underpin the preparation and presentation of financial statements.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made and posted, ensuring that debits and credits still match.