Which of the Following Statements Is False

question 1

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:

Myelination

The process in which neurons are coated in a fatty substance, myelin, which contributes to faster neural communication.

Synaptic Pruning

The process by which synapses, neural connections that are seldom used, disappear.

White Matter

Myelinated brain tissue.

Facial Processing

The interpretation and recognition of human faces, including emotional expressions and identity, by the brain.