Lease Obligations Are Included in Certain Leverage Ratios Because Leases

question 30

Multiple Choice

Lease obligations are included in certain leverage ratios because leases:

• A)Require the payment of interest
• B)Represent long-term fixed obligations
• C)Must be financed through a bank
• D)Are a measure of efficiency, just like debt

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Definitions:

GDP

The total value of all produced goods and services within a country over a particular time period is what Gross Domestic Product (GDP) measures.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, intended to adjust the nominal GDP to reflect changes in price levels.

National Income

The total value of all goods and services produced by a country's economy over a specific period, often used as a measure of economic health.

Wages

Financial compensation paid by an employer to an employee for their labor, typically calculated on an hourly, daily, or piecework basis.