22. Consider lease agreements. Which statement is false? a. An operating lease is based on the idea of substance over form." b. The lessee in a finance lease records an asset on its balance sheet. c. The lessee in a finance lease records interest expense on its income statement. d. A finance lease is a way to finance the acquisition of a long-term asset. 23. The LIFO inventory valuation method is used by companies mostly because: a. it is easy to use b. it defers taxes to the future c. it is allowed under international accounting standards d. it is conceptually the best method 24. Which statement about the LIFO inventory valuation method is true? a. LIFO gives a current valuation for ending inventory on the balance sheet. b. A LIFO layer is a group or block of units purchased at a certain unit cost. c. The LIFO conformity rules states that if LIFO is used for financial statements, it must be used for tax returns. d. LIFO liquidations occur when units purchased exceed units sold. 25. Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying the same)? b. c. Earnings per share will increase Treasury stock will show as a contra-stockholders' equity account on the balance sheet The company will show a gain from purchase of treasury stock on the income statement Fewer shares of common stock are outstanding. d. 26. In times of rising prices, than will will give Cost of Goods Sold Expense a. b. LIFO higher FIFO FIFO higher LIFO FIFO same LIFO LIFO same FIFO