Chapter 9, Problem 9.11S

LO 4,5

(Learning Objectives 4, 5: Deferred income tax, commitments, lease, and ratio vocabulary terms) Complete the following statements with one of the terms listed here

Commitment	Finance lease	Leverage ratio
Debt ratio	Income tax payable	Operating lease
Deferred income taxes payable	Lessee	Times-interest-earned ratio

  1    The _____ measures the proportion of a company s total liabilities to its total assets.

  2    ––––– is usually a long-term liability arising from the temporary timing difference for revenues and expense recognition between GAAP accounting rules and the U.S. tax code.

  3.    A_____ enables a company leasing an asset to own it after a parted of time

  4.    A high _____indicates ease in paying interest expense.

  5.    _____ is a currant liability and represents the amount of income taxes a company must pay to the federal government based on tax reporting rules.

  6.    A(n) _____ covering twelve months or less is only type of lease that is not required to be included on the balance sheet.

  7.    A company’s average total assets per dollar of average common stockholder’s equity is its _____.

  8.    A contractual promise to make transactions in the future that create financial obligations for a company is a _____.

  9.    The tenant in a lease arrangement is also known as the _____.