Which of the Following Statements Is FALSE

question 5

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 a 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:

Channel And Media

Various methods or platforms through which communication and information are transmitted and distributed.

Attractive Appearance

The aspect of something being visually appealing or pleasing in its physical look or design.

Professional Appearance

The way an individual is expected to dress and present themselves in a work environment, often conforming to standards of the profession.

Writing Process

The series of actions or steps taken in order to produce a piece of writing.