Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A) Leases may include early cancellation options that allow the lessee to end the lease early (perhaps for a fee).
• B) The cost of the lease will depend on the asset's residual value, which is its book value at the end of the lease.
• C) Leases may allow the lessee to trade in and upgrade the equipment to a newer model at certain points in the lease.
• D) Leases may contain buyout options that allow the lessee to purchase the asset before the end of the lease term.