Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A) The Canada Revenue Agency (CRA) had its own classification rules under Interpretation Bulletin IT-233R that effectively ruled on June 14, 2001, that the legal form of the contract would be central to determining if the transaction was a sale or lease.
• B) A lease contract would be treated as a lease and a sale contract would be treated as a sale.
• C) If the contract were designed strictly to avoid tax, the General Anti-Avoidance Rule (GAAR) could be used to reassess the case.
• D) The categories used to report leases in 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.

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Definitions:

Partnership Status

A term that refers to the legal or personal recognition of a relationship's nature, typically within the context of marriage or business.

Young Adults

Individuals typically in their late teens to mid-twenties, navigating the transition from adolescence to adulthood.

Older Adults

Individuals typically over the age of 65, often experiencing various physiological and cognitive changes.

Dissatisfaction

A feeling of unhappiness or discontent resulting from unmet expectations or needs.