Which of the Following Statements Regarding Leases Is False

question 71

Multiple Choice

Which of the following statements regarding leases is false?

• A)Lease agreements are a popular form of financing the purchase of assets because leases do not require a large initial outlay of cash.
• B)Accounting recognizes two types of leases--short- and long-term leases.
• C)If a lessor classifies a lease as a long-term lease, then the lessor records a lease liability on its balance sheet.
• D)If a lease is classified as a short-term lease, the lessee records an asset on its balance sheet.

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Definitions:

Codetermination

A practice where workers and employers jointly participate in decision-making processes within a company, especially common in some European countries.

Works Councils

Employee representative bodies present in some European countries, involved in discussing and negotiating workplace matters.

Centralized Collective Bargaining

A form of bargaining where negotiations are conducted at a national, regional, or industry-wide level, rather than between individual employers and their employees.

Employee Voice

Refers to the ways in which employees can express their opinions, concerns, and suggestions about their work and workplace conditions.