Which of the Following Statements Is FALSE Regarding Operating Leases

question 6

Multiple Choice

Which of the following statements is FALSE regarding operating leases?

• A)They are recorded as the present value of the lease on the balance sheet
• B)They do not have any real effect on the balance sheet
• C)They must not extend for more than 75 percent of the asset's life
• D)They are usually the preferred form of accounting for leases

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Definitions:

Variables

Elements, characteristics, or conditions that can change or vary within a research study.

Researchers

People who undertake organized research to discover facts or establish principles, or to gather data on a topic.

Modality

The particular mode in which something exists or is experienced or expressed.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean.