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1. Effects of leasing on financial statements Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements. According to the FASB-issued Statement 13, which of the following statements is true? O The present value of all future lease payments should be reported as assets on the balance sheet O The present value of all past lease payments should be reported as a liability on the balance sheet. O Leased assets should be reported as current assets on the balance sheet. O Assets leased under financial or capital leases should be reported as fixed assets on the balance sheet. Consider the following statement on capital leases: According to Statement 13, the payments on a financial lease should be treated as an operating expense and should not in any case affect a firm's true debt ratio. Is the preceding statement true or false? True O False 1. Effects of leasing on financial statements Leasing is often referred to as off-balance-sheet financing because of the way that the transaction is treated and reported in financial statements. According to the FASB-issued Statement 13, which of the following statements is true? O The present value of all future lease payments should be reported as assets on the balance sheet O The present value of all past lease payments should be reported as a liability on the balance sheet. O Leased assets should be reported as current assets on the balance sheet. O Assets leased under financial or capital leases should be reported as fixed assets on the balance sheet. Consider the following statement on capital leases: According to Statement 13, the payments on a financial lease should be treated as an operating expense and should not in any case affect a firm's true debt ratio. Is the preceding statement true or false? True O False