Which of the Following Is Not True About Operating Leases

question 7

Multiple Choice

Which of the following is not true about operating leases and the firms that use them?

• A) Used by most firms to facilitate business operations
• B) Many operating leases are non-cancelable
• C) Firm is usually not interested in ownership
• D) Most operating leases are short term
• E) Most often used when firm wants freedom/flexibility

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Definitions:

Millimeters

A unit of length in the metric system equal to one thousandth of a meter, commonly used worldwide for many measurements.

Lettering

The practice of adding textual information, such as notes and dimensions, to engineering drawings in a standardized manner.

Pictorial Drawing

A type of drawing that represents three dimensions of an object in one view, providing a realistic view of an object, making it easier to understand its shape and features.