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:

Gaining Commitment

The process of securing others' support and dedication towards a particular goal or course of action.

Loyalty

A strong feeling of support or allegiance to someone or something, often manifested through consistent preference or patronage.

Organizational Context

The set of circumstances or conditions, including culture and structure, that surrounds and influences the operations of an organization.

Exert Influence

The act of impacting or changing someone's behavior, actions, or perception through direct or indirect means.