Which of the Following Statements Concerning Leases Is True

question 180

Multiple Choice

Which of the following statements concerning leases is true?

• A) Capital leases are favored by lessees.
• B) The appearance of the account Leased Asset on the balance sheet 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:

Distribution

The way in which a set of values is spread or dispersed across a range, often visualized as a graph plotting the frequency of different outcomes.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in comparison to a normal distribution.

Distribution

The way in which something is shared out among a group or spread over an area, often referring to the statistical spread of values in a dataset.

Negatively Skewed

Describes a distribution of data where the tail is longer on the left side of the distribution's peak, indicating most values are high and few are low.