Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)Most financial analysts and sophisticated investors consider operating leases (which must be listed in the footnotes of the financial statements)to be additional sources of leverage.
• B)By carefully avoiding the four criteria that define an operating lease for accounting purposes,a firm can avoid listing the long-term lease as a liability.
• C)Because a lease is equivalent to a loan,the firm can increase its actual leverage without increasing the debt-to-equity ratio on its balance sheet.
• D)For most large corporations,the amount of leverage the firm can obtain through a lease is unlikely to exceed the amount of leverage the firm can obtain through a loan.

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Definitions:

Conscientiousness

A characteristic of an individual that involves being orderly, reliable, productive, and having a significant adherence to responsibility.

Vocational Interest Scales

are tools used to assess an individual's preferences and interests concerning various careers or occupational areas.

Oregon

Located in the Pacific Northwest of the United States, this state features a range of environments, from urban centers and agricultural lands to forested and mountainous areas.

Vocational Interest Scales

Psychological assessment tools that measure an individual's interests and preferences toward certain careers or professional activities to help guide career planning or changes.