Which of the Following Statements Is FALSE Regarding Operating Leases

question 7

Multiple Choice

Which of the following statements is FALSE regarding operating leases?

• A) They are recorded as present value of lease on the balance sheet
• B) They do not have any real effect the balance sheet
• C) They must not extend for at least 75 percent of the asset's life
• D) They are usually the preferred form of accounting for leases

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Definitions:

Slave Sales

Transactions involving the buying and selling of individuals as property, a central element of the slave system in historical contexts.

Family Units

Social groups consisting of parents and their children, considered as a basic unit in society for educating children and providing emotional and financial support.

Compromise of 1850

A series of congressional laws intended to settle the issues arising from the expansion of slavery into new territories, aiming to ease tensions between the North and South.