3. (Multiple Choice)

Which of the following statements is true?

A. In a capital lease, the lessee records the asset on its books. B. A lessee will record depreciation expense for an operating lease. C. An operating lease results in the recording of a liability and interest. D. All of these. E. None of these.

4. (Multiple Choice)

In considering how much merchandise inventory to stock, one should consider numerous cost-benefit factors. In general, which of the following statements is true?

A. Marketing would tend to want to stock more inventory than finance personnel. B. Marketing would tend to want to stock less inventory than finance personnel. C. Marketing would tend to want to stock the same inventory as finance personnel. D. The amount of inventory to stock would be irrelevant to finance personnel. E. None of these.