Indicate whether the following statements are TRUE (T) or FALSE (F).

1) For an operating lease, the lessee does not show any liability on its balance she

2) Debt covenant restrictions can be a reason why a firm prefers an operating lease to a capital lease

3) U.S. GAAP requires that payments associated with a non-cancelable operating lease with a lease term of greater than one year should be disclosed in the notes to the financial statements