Which of the Following Statements Is Not True of a Financial

question 7

Multiple Choice

Which of the following statements is not true of a financial lease?

• A)it can be cancelled after the equipment is no longer needed.
• B)it is a source of financing.
• C)it is binding obligation for the lessee.
• D)it extends over most of the economic life of the leased asset.

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Definitions:

Criterion Validity

An attribute of a test, when it gives higher scores to people already known to have greater ability in the area it tests. The concept arises because some qualities are easier to recognize than to define completely, such as artistic ability.

Construct Validity

A measure of how well a test or experiment measures up to its claims or theoretical assumptions.

Analogue Observational Setting

An artificial environment set up in an office or laboratory to elicit specific classes of behaviour in individuals. Used when in vivo observation in the natural environment is impractical because of time constraints and the unpredictability of modern family life.

Subject Reactivity

A phenomenon in which individuals alter their behavior or responses due to their awareness of being observed or studied.