Which of the Following Statements Regarding Leases Is False

question 25

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 lessor records a lease liability on its balance sheet.
• D)If a lease is classified as an operating lease, the lessee records an asset on its balance sheet.

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Definitions:

Psychological Dependence

A condition characterized by an emotional or mental reliance on a substance or behavior.

Physical Health

A state of physical well-being in which a person is mechanically fit to perform bodily functions without any discomfort or pain.

Narcotics Problem

Issues related to the misuse and dependence on illegal or prescription drugs with narcotic effects, often leading to addiction and various social, psychological, and health problems.

Heroin

A highly addictive drug derived from morphine that is illegal in most countries and is known for its euphoric effects.