Which of the following statements regarding leases is false? a.Accounting recognizes two types of leases—operating and finance leases. b.Lease agreements are a popular form of financing the purchase of assets because leases do not require a large initial outlay of cash. c.If a lease is classified as an operating lease, the lessee records a lease liability on its statement of financial position. d.If a lease is classified as a finance lease, the lessee records a lease liability on its statement of financial position
Which of the following statements regarding leases is false? a.Accounting recognizes two types of leases—operating and finance leases. b.Lease agreements are a popular form of financing the purchase of assets because leases do not require a large initial outlay of cash. c.If a lease is classified as an operating lease, the lessee records a lease liability on its statement of financial position. d.If a lease is classified as a finance lease, the lessee records a lease liability on its statement of financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17.
Which of the following statements regarding leases is false?
a.Accounting recognizes two types of leases—operating and finance leases.
b.Lease agreements are a popular form of financing the purchase of assets because leases do not require a large initial outlay of cash.
c.If a lease is classified as an operating lease, the lessee records a lease liability on its statement of financial position.
d.If a lease is classified as a finance lease, the lessee records a lease liability on its statement of financial position.
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