All of the Following Statements Regarding Leases Are True Except

question 89

Multiple Choice

All of the following statements regarding leases are true except:

• A)For a finance lease,the lessee records the leased item as its own asset.
• B)For a finance lease,the lessee amortizes the right-of-use asset acquired under the lease.
• C)Finance leases create a liability on the balance sheet.
• D)Finance leases do not transfer ownership of the asset under the lease,but operating leases often do.
• E)For a short-term lease of a few days or weeks,the lessee records payments as rental expense.

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Definitions:

Tuning Fork

A metal instrument that vibrates at a fixed pitch when struck, used to test hearing acuity, bone vibration, and for tuning musical instruments.

Nerve Conduction

A medical diagnostic test that measures how quickly electrical impulses move through your peripheral nerves, often used to diagnose nerve damage or dysfunction.

Spirometer

A medical instrument used to measure the volume of air inhaled and exhaled by the lungs.

Scribe

A person who documents by hand or enters data into the EHR as a profession and helps providers keep track of records.