Question
If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then: a. the times interest
If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then:
a. the times interest earned ratio will be overstated, based upon the financial statements
b. the fixed charge ratio will be overstated, based upon the financial statements
c. the debt ratio will be understated
d. the working capital will be understated
e. none of the answers are correct
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When capitalizing leases onto the Balance Sheet the PV of ...
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
