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:

Classification Table

A systematic arrangement of elements or objects based on a set of criteria, often used in science to organize data or concepts for analysis and understanding.

Volcanic Breccia

A volcanic rock containing angular fragments in a matrix of finer material.

Igneous Rocks

Rocks formed through the cooling and solidification of magma or lava, characterized by a crystalline texture and often classified by their silica content.

Classification Table

A systematic arrangement of data in rows and columns, typically used to organize and categorize information such as types or characteristics.