Which of the Following Statements Concerning Leases Is True

question 18

Multiple Choice

Which of the following statements concerning leases is true?

• A) Finance leases are favored by lessees.
• B) The appearance of the account, Leased Asset, on the statement of financial position, signifies an operating lease.
• C) The portion of a lease liability expected to be paid in the next year is reported as a current liability.
• D) Present value is irrelevant in accounting for leases.

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to physical and psychological dependence.

Brain Abnormality

Any deviation from the normal structure or function of the brain, which can be due to genetic factors, injury, or disease, affecting behavior and cognitive function.

Severe Drinking Problem

An advanced stage of alcohol use disorder characterized by uncontrollable drinking and significant negative impacts on one's health, relationships, and responsibilities.

Community Reinforcement

A behavioral treatment approach for addiction that seeks to replace environmental contingencies that have encouraged alcohol or drug use with healthier, substance-free activities and rewards.