Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)Most financial analysts and sophisticated investors consider operating leases (which must be listed in the footnotes of the financial statements)to be additional sources of leverage.
• B)By carefully avoiding the four criteria that define a operating lease for accounting purposes,a firm can avoid listing the long-term lease as a liability.
• C)Because a lease is equivalent to a loan,the firm can increase its actual leverage without increasing the debt-to-equity ratio on its balance sheet.
• D)For most large corporations,the amount of leverage the firm can obtain through a lease is unlikely to exceed the amount of leverage the firm can obtain through a loan.

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Definitions:

Neo-Freudian

Refers to psychologists who followed Freud but developed their own theories, often emphasizing social and cultural factors over sexual ones.

Transference

In psychotherapy, the process by which patients project feelings about significant others from their past onto the therapist.

Inferiority Complex

A psychological state in which individuals feel deep feelings of inadequacy and a lack of self-worth compared to others.

Psychosocial Stages

Refers to Erik Erikson's theory of human development, which posits that individuals pass through eight stages of psychosocial conflict across the lifespan.