Which of the Following Statements Regarding Operating Leases Is False

question 36

Multiple Choice

Which of the following statements regarding operating leases is false?

• A) They are also called a finance leases.
• B) The lease is viewed as a rental for accounting purposes.
• C) The lessee reports the entire lease payment as an operating expense.
• D) They are disclosed in the footnotes of the lessee's financial statements.

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Definitions:

Deformed

Referring to rocks or earth materials that have been changed in shape or dimension under stress, such as during tectonic activity.

Flattened

Describes objects that have been pressed into a thinner shape or planar surface, often as a result of external pressure.

Low Pressure

A condition in the atmosphere where the air pressure is lower than surrounding areas, often leading to cloudy weather and precipitation.

High Temperature

A condition or state of matter characterized by a heat level that is significantly above the normal or expected temperature range.