Which of the Following Statements Is Not True

question 48

Multiple Choice

Which of the following statements is not true?

• A)The lessee does not have to buy the equipment.
• B)The lessee is responsible for making the lease payments.
• C)Lease payments are not tax-deductible.
• D)The lessee does not have to buy the equipment, the lessee is responsible for making the lease payments, and the lessee may give up the depreciation tax shield.

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Definitions:

Total Percentage Return

The total return on an investment, expressed as a percentage, accounting for all forms of earnings including dividends, interest, and capital gains.

Quarterly Dividends

Dividends paid by a corporation to its shareholders every quarter of the fiscal year.

Shares

Units of ownership interest in a corporation or financial asset, providing a share in the company's profits and losses.

Geometric Average Returns

A method of calculating the average rate of return of a set of values that accounts for the effects of compounding, useful for assessing the performance of investments over time.