Which of the Following Statements Regarding Leases Is false

question 185

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-operating and capital leases.
• C) If a lessor classifies a lease as a capital lease, then the lessee records a lease liability on its balance sheet.
• D) If a lease is classified as an operating lease, the lessee records a lease liability on its balance sheet.

---

Definitions:

Corporate Control

The ownership structure or governance framework that determines the strategic direction and decisions of a company.

Logrolling

The trading of votes by legislators to secure favorable outcomes on decisions concerning the provision of public goods and quasi-public goods.

Political Technique

Strategies or methods used in the realm of politics to gain influence, power, or achieve specific goals.

Special Local Project

A specific, often government-funded, initiative designed to address a unique need or issue within a local community.