Which of the Following Statements Regarding Leased Assets Is Incorrect

question 15

Multiple Choice

Which of the following statements regarding leased assets is incorrect?

• A) Accrual accounting recognises the economic value of the asset.
• B) Lease assets are amortised.
• C) The principal portion is deducted from the lease and the interest is an expense.
• D) The cost of the lease asset is not recorded in the balance sheet.

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Definitions:

Work-Related Activities

Tasks or actions that are part of an individual's job responsibilities, contributing to the goals of the organization.

Commitment

Commitment is the state or quality of being dedicated to a cause, activity, or goal, often manifesting as a willingness to give one's time and energy to something believed in.

Task Objectives

Specific goals or targets set for a task, often defining its purpose and the desired outcome or performance level.

Member Diversity

The presence of a variety of demographic, cultural, and personal differences among the members of a team or organization.