Final answer:
False. Executory costs do not represent payment on or reduction of the lease obligation.
Step-by-step explanation:
False. Executory costs do not represent payment on or reduction of the lease obligation.
Executory costs typically refer to the costs associated with operating and maintaining the leased property, such as property taxes, insurance, and maintenance expenses. These costs are separate from the lease obligation, which represents the payments that the lessee is obligated to make to the lessor for the use of the property.
For example, if a tenant is responsible for paying property taxes and insurance on a leased space, these expenses would be considered executory costs and not part of the lease obligation itself.