Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements According to the FASB-issued Statement 13, which of the following statements is true? The present value of all future lease payments should be reported as assets on the balance sheet. Leased assets should be reported as current assets on the balance sheet. The present value of all past lease payments should be reported as a liability on the balance sheet. Assets leased under financial or capital leases should be reported as fixed assets on the balance sheet. Consider the following statement on capital leases: According to Statement 13, the payments on a financial lease should be treated as an operating expense and should not in any case affect a firm's true debt ratio. Is the preceding statement is true or false. True False
Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements According to the FASB-issued Statement 13, which of the following statements is true? The present value of all future lease payments should be reported as assets on the balance sheet. Leased assets should be reported as current assets on the balance sheet. The present value of all past lease payments should be reported as a liability on the balance sheet. Assets leased under financial or capital leases should be reported as fixed assets on the balance sheet. Consider the following statement on capital leases: According to Statement 13, the payments on a financial lease should be treated as an operating expense and should not in any case affect a firm's true debt ratio. Is the preceding statement is true or false. True False
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements.
According to the FASB-issued Statement 13, which of the following statements is true?
The present value of all future lease payments should be reported as assets on the balance sheet.
Leased assets should be reported as current assets on the balance sheet.
The present value of all past lease payments should be reported as a liability on the balance sheet.
Assets leased under financial or capital leases should be reported as fixed assets on the balance sheet.
Consider the following statement on capital leases:
According to Statement 13, the payments on a financial lease should be treated as an operating expense and should not in any case.
affect a firm's true debt ratio.
Is the preceding statement is true or false.
True
False
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