Which of the Following Statements Is Incorrect

question 17

Multiple Choice

Which of the following statements is incorrect?

• A)The capitalisation of a leased asset increases the value of reported non-current assets and reduces the return on assets ratio.
• B)Recognition of the present value of future lease payments as a liability increases reported current and non-current liabilities.This favourably affects debt-equity ratios and liquidity- solvency ratios.
• C)Depreciation and interest expenses on finance leases may exceed rental payments and result in lower profits being reported in the early years of the lease.
• D)More onerous disclosure requirements are prescribed for finance leases than for operating leases.

Analyze estate planning strategies using different types of trusts.

Prioritize claims under the Uniform Probate Code.

Understand the implications of dying intestate and estate distribution without a will.

Understand the principles and methods for calculating days' sales in inventory.

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Definitions:

Allopatric Speciation

Speciation that occurs when one population becomes geographically separated from the rest of the species and subsequently evolves. Compare with sympatric speciation.

Geographic Isolation

A form of evolutionary separation where populations of the same species become physically divided by geographical barriers leading to genetic divergence.

Adaptive Radiation

The evolution of a large number of related species from an unspecialized ancestral organism.

Kaibab Squirrels

A species of squirrel that is native to the North Rim of the Grand Canyon in the United States, known for its distinctive tufted ears.