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:

Blue

A color, part of the visual spectrum, that is perceived when light has a dominant wavelength of roughly 450 to 495 nanometers.

Green

Often associated with the color representing nature, growth, renewal, and environmental sustainability.

Trichromatic Theory

A theory of color vision that suggests our eyes can perceive color because they can detect three different wavelengths of light corresponding to red, green, and blue.

Helmholtz

A German physicist and physician known for his contributions to the understanding of the mechanisms of vision and hearing among other areas.