Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) If the lease is deemed to be a true lease, the firm is assumed to have effective ownership of the asset and the asset is protected against seizure.
• B) Although the legal ownership of the asset resides with the lessor, in a non-tax lease the lessee receives the depreciation deductions.
• C) The treatment of leased property in bankruptcy will depend on whether the lease is classified as a security interest or a true lease by the bankruptcy judge.
• D) In a non-tax lease, the interest portion of the lease payment is interest income for the lessor.

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Definitions:

Induction

A method of reasoning that moves from specific instances to form general conclusions or theories.

Felines

A term referring to cats or members of the cat family, which includes domestic cats and their wild relatives.

Whiskers

Long, projecting hairs or bristles growing near the mouth or other parts of the face of many animals, used for sensory purposes.

Fungus

A fungus is a type of living organism that belongs to its own kingdom, separate from plants and animals, characterized by its ability to decompose and absorb organic material.