1. All of these are characteristics of a leveraged buyout except-

A. Issue AAA rated equity securities B. borrow money (use debt)

C. Use target company's assets and cash flow as collateral

D. Take the target company private

2. A common form of debt is leasing assets. T/F?

3. Accounting for a capital lease shows higher amounts of debt and lower interest expense in the earlier years of the lease term. T/F?

4. A contingent loss is recorded if it is both probable and estimable. T/F?