Which Statement Is Not True

question 101

Multiple Choice

Which statement is not true?

• A)If a lease is a capital lease because of a bargain purchase option, the leased asset should be depreciated over the life of the asset, not the life of the lease.
• B)The lessee ignores unguaranteed residual value in the measurement of the lease obligation.
• C)If there is a bargain purchase option, the lessor does not consider an unguaranteed residual value in measuring the lease receivable at the date of lease signing.
• D)In direct financing leases, the net investment in the lease should be adjusted each year by material changes (increases or decreases)in estimated unguaranteed residual values.

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Definitions:

Court Action

Legal proceedings initiated to enforce a right or seek a remedy from a court of law.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment or creates a hostile work environment.

Monopsonist

A market situation where there is only one buyer for a product or service, giving this buyer significant power over the price and terms of purchase.

Bilateral Monopolist

This term describes a market with only one supplier (monopolist) and one buyer (monopsonist), leading to Unique negotiation dynamics over price and quantity.