The new FASB standard for measuring and reporting leases requires both finance and operating leases that are longer than _____________________ to be placed on the balance sheet.

Capitalizing a lease means to _____________________________________________________.

Part X: Analyze the impact of leverage on the financial statements

What is the equation to calculate the leverage ratio?

How is the times-interest-earned ratio calculated?

What does a high times-interest earned ratio indicate?

Part XI: Report long-term liabilities on the financial statements

The ability to work back and forth between the financial statements and the related notes is an important part of financial analysis. True or false?

U.S. GAAP encourages companies to report the ____________________ of their long-term debt.

Part XII: Explain the features of a corporation

_____________________________ represents the stockholders ownership interest in the assets of a corporation. Stockholders equity is divided into two main parts:

Paid-in capital

Retained earnings

Which of the following would you find on a stock certificate? Circle all that apply.

Par value

Company name

Interest rate

Number of shares

Declared dividends

Preferred stock gives its owners certain advantages over common stockholders. True or false?