Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)Lease payments are a fixed obligation of the firm.
• B)The risk of the lease payments is no greater than the risk of secured debt,so it is reasonable to discount the lease payments at the firm's secured borrowing rate.
• C)If a firm purchases a piece of equipment,the expense is a capital expenditure.Therefore,the purchase price can be depreciated over time,generating a depreciation tax shield.
• D)If the equipment is leased and the lease is a non-tax lease,there is no capital expenditure,but the lease payments are an operating expense.

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Definitions:

Cognitive-Behavioral Therapy

A type of psychotherapy that aims to change patterns of thinking or behavior to address psychological problems.

Maudsley Model

A family-based treatment for eating disorders that emphasizes the involvement of the patient's family in the recovery process.

Family Therapy

A form of psychotherapy that involves all members of a nuclear or extended family and aims at improving communication and resolving conflicts.

Cognitive-Behavioral Therapy

A type of mental health treatment aimed at enhancing well-being by changing negative feelings, actions, and beliefs.