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.

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Definitions:

Price

The expense involved in securing a product or service.

Demand Curve

The Demand Curve is a graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Quantity Demanded

The level of product or service that buyers intend to purchase at various prices.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular variable or condition.