Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)The lease-equivalent loan is the loan that is required on the purchase of the asset that leaves the purchaser with the same obligations as the lessor would have.
• B)Lease obligations themselves could trigger financial distress.
• C)When a firm enters into a lease,it is committing to lease payments that are a fixed future obligation of the firm.
• D)When a firm leases an asset,it is effectively adding leverage to its capital structure (whether or not the lease appears on the balance sheet for accounting purposes).

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Definitions:

Decentration

A cognitive ability to consider multiple aspects of a situation rather than focusing on just one.

Conservation

The principle that physical properties of objects, such as volume and mass, remain constant despite changes in their form or appearance.

Seriation

The cognitive ability to organize objects or items in a logical order, such as by size, number, or volume, essential in early childhood development.

Transitivity

In mathematics and logic, transitivity is a property of binary relations that if an element A is related to B, and B is related to C, then A is also related to C.