Which of the Following Statements Regarding Capital Leases Is FALSE

question 37

Multiple Choice

Which of the following statements regarding capital leases is FALSE?

• A)Because capital leases increase the apparent leverage on the firm's balance sheet,firms sometimes prefer to have a lease categorized as an operating lease to keep it off the balance sheet.
• B)The firm does not report the present value of the future lease payments as a liability on the balance sheet.
• C)The asset acquired is listed on the lessee's balance sheet,and the lessee incurs depreciation expenses for the asset.
• D)They are viewed as an acquisition for accounting purposes.

---

Definitions:

Language Processing

The method by which the brain comprehends, interprets, and produces language, including spoken, written, and sign language.

CAT Scan

Short for Computerized Axial Tomography Scan, a medical imaging technique that combines multiple X-ray measurements to generate detailed cross-sectional images of the body, including slices of the brain.

X-rays

A form of electromagnetic radiation that can pass through many materials, including the human body, and is used in medical imaging to create pictures of the inside of the body.

Visualization

The process of creating mental images to represent information, objects, or spaces for the purpose of problem-solving or understanding.