Which of the Following Statements Is False

question 31

Multiple Choice

Which of the following statements is false?

• A) The decision to lease is often driven by real-world market imperfections related to leasing's accounting, tax, and legal treatment.
• B) When publicly traded firms disclose leasing transactions in their financial statements, they must follow the recommendations of the Financial Accounting Standards Board (FASB).
• C) In its Statement of Financial Accounting Standards No. 13 (FAS13), the FASB provides specific criteria that distinguish a true tax lease from a non-tax lease.
• D) The categories used to report leases on the financial statements affect the values of assets on the balance sheet, but they have no direct effect on the cash flows that result from a leasing transaction.

---

Definitions:

Missing Contract Terms

Refers to conditions or clauses that are not explicitly stated in a contract, potentially leading to disputes or the need for judicial interpretation.

Fundamental Policy

Core principles or philosophies that guide the decision-making process within an organization or government.

Definite Enough Terms

Clarity and specificity in contractual terms that define and bind the agreement's obligations and expectations.

State Legislature

The lawmaking body within a state, responsible for creating legislation and policies governing the state.