Which of the Following Statements Regarding Leases Is false

question 185

Multiple Choice

Which of the following statements regarding leases is false?

• A) Lease agreements are a popular form of financing the purchase of assets because leases do not require a large initial outlay of cash.
• B) Accounting recognizes two types of leases-operating and capital leases.
• C) If a lessor classifies a lease as a capital lease, then the lessee records a lease liability on its balance sheet.
• D) If a lease is classified as an operating lease, the lessee records a lease liability on its balance sheet.

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Definitions:

Uncomfortable Silences

Moments of silence in conversation or interaction that create a feeling of discomfort or awkwardness among participants.

High Pitch

A sound frequency that is high, often described as shrill or squeaky, perceived differently depending on the listener's hearing ability.

Independence

The state or condition of being self-sufficient and not relying on others for support or assistance.

Priority

The status established by importance or urgency that affects the order or time something will be addressed or done.