An Asset Leased Under an Operating Lease Will Appear on the Balance

question 147

True/False

An asset leased under an operating lease will appear on the balance sheet as a long-term asset.

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Definitions:

Deferred Tax Liability

A tax obligation recognized in the financial statements representing taxes that are owed but not yet paid.

Long Service Leave

A paid absence after the employee has provided a long period of continuous employment.

Company Tax Rate

The percentage rate at which a company is taxed on its profits by the government.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.