Which of the Following Is Most CORRECT

question 43

Multiple Choice

Which of the following is most CORRECT?

• A)Firms that use "off-balance-sheet" financing, such as leasing, would show lower debt ratios if the effects of their leases were reflected in their financial statements.
• B)Capitalizing a lease means that the firm issues equity capital in proportion to its current capital structure, in an amount sufficient to support the lease payment obligation.
• C)The fixed charges associated with a lease can be as high as, but never greater than, the fixed payments associated with a loan.
• D)Capital, or financial, leases generally provide for maintenance by the lessor.
• E)A key difference between a capital lease and an operating lease is that with a capital lease, the lease payments provide the lessor with a return of the funds invested in the asset plus a return on the invested funds, whereas with an operating lease the lessor depends on the residual value to realize a full return of and on the investment.

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Definitions:

Physical Fitness

The condition of being physically healthy and strong, especially as the result of exercise and proper nutrition.

Traditional Success Model

Pertains to conventional definitions of achievement and progress, often measured by wealth, career status, and tangible accomplishments.

Work-Related Needs

The requirements or desires that employees seek to fulfill through their employment, such as income, fulfillment, and professional development.

Intellectual Growth

The development of the mind and cognitive abilities through learning, experience, and education.