Which of the Following Statements Is FALSE

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) .