Which of the Following Statements Is Not Correct

question 17

Multiple Choice

Which of the following statements is not correct?

• A)the rewards of ownership relate to the benefits obtained from using the asset and any appreciation in its resale value at the end of the lease
• B)leases that are not finance leases are operating leases
• C)title,or ownership,is essential to the definition of an asset
• D)the risks of ownership relate to any inability to derive the full expected benefits from use,depreciation in resale value,and obsolescence

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Definitions:

Identified Resources

Resources whose location, quality, and quantity are known and can be recovered with current technology and economic conditions.

Nonrenewable Mineral

A mineral resource that cannot be replenished within a human timescale, such as fossil fuels or certain metals.

Underwater Mineral Deposits

Mineral resources found on the seafloor or under bodies of water, including metals, oil, and gas, often extracted through offshore mining.

Faulting

A geological process that involves the fracturing and displacement of Earth's crust, often resulting in earthquakes.