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.

---

Definitions:

John Locke

John Locke was a 17th-century English philosopher and physician, widely regarded as one of the most influential of Enlightenment thinkers, particularly concerning the development of political philosophy and his theories on self, identity, and consciousness.

Perceptual Skills

relate to the ability to interpret, understand, and define input from the sensory systems.

Rosabeth Moss Kanter

A renowned professor at Harvard Business School known for her research in strategy, innovation, and leadership within organizations.

Informal Relationships

Personal interactions that occur outside of structured or official channels within an organization, often leading to the formation of social networks and bonds.