Debt-Rating Agencies Take Financial and Operating Leases into Account Because

question 34

Multiple Choice

Debt-rating agencies take financial and operating leases into account because:

• A)they realize that lessees need that information for their records.
• B)the agencies are required by law to do so.
• C)the book income of the lessee is improved by including lease obligations.
• D)the book income will be lower, all things equal, if lease obligations show as a balance sheet item.

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Definitions:

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