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:

Proprietorship

A business structure owned by a single individual, where the owner is entitled to all profits and responsible for all debts and liabilities.

Business Entity Assumption

An accounting principle that treats a business as an entity separate from its owners, meaning its financial transactions are recorded distinctly from those of its owners or other businesses.

Economic Unit

An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.

FASB

Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the U.S.