Which of the Following Statements Relating to a Finance Lease

question 7

Multiple Choice

Which of the following statements relating to a finance lease is NOT true?

• A) All risks and benefits incidental to ownership are substantially transferred to the lessee.
• B) The present value of future lease payments is recorded as a liability.
• C) The leased asset is amortised.
• D) Finance leases are nor reported in the balance sheet.

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Definitions:

ETFs

Exchange-Traded Funds, which are investment funds traded on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Capital Gain Distributions

Payments to shareholders or fund investors from the sale of securities within the portfolio that have appreciated in value.

Income Distributions

Payments made from a fund or an entity to its shareholders, often derived from interest or dividend income.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, often used to price each share of a mutual fund or ETF.