All of the following statements regarding leases are true except:
A. For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease.
B. Finance leases create a liability on the balance sheet.
C. For a short-term lease of a few days or weeks, the lessee records payments as rental expense.
D. For a finance lease, the lessee records the leased item as its own asset.
E. Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
Answer: E
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