Which of the Following Statements About Capital Leases Is INCORRECT

question 179

Multiple Choice

Which of the following statements about capital leases is INCORRECT?

• A) Under a capital lease, the lessee's books do not report the leased asset.
• B) A capital lease can transfer title of the leased asset to the lessee at the end of the lease term.
• C) A capital lease contains a bargain purchase option.
• D) Under a capital lease, the lessee records a lease liability at the beginning of the lease term.

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Definitions:

Community Outreach

Initiatives and programs designed to engage and build relationships with the local community or specific demographic groups.

Systematic Approach

A methodical plan or process followed to achieve a specific goal or solve a particular problem.

Relevant Labor Market

The geographic and occupational area from which an employer recruits employees or expects to recruit.

High Unemployment

A situation where a larger than normal portion of the workforce is without jobs, indicating economic distress.