Question
Leasing can affect a firms balance sheet. Which of the following statements is NOT correct? A. Capital leases and operating leases longer than a year
Leasing can affect a firms balance sheet. Which of the following statements is NOT correct?
| A. | Capital leases and operating leases longer than a year must be shown directly on the lessees balance sheet. | |
| B. | An operating lease is considered more like owning a piece of property that lessees have uncertainty regarding residual value. | |
| C. | For accounting purposes, leases are classified as either capital or operating. | |
| D. | Leasing can be a substitute for debt. |
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
