Interest Paid on a Credit Card Is Tax-Deductible

question 73

True/False

Interest paid on a credit card is tax-deductible.

---

Definitions:

Off-Balance Sheet Lease Financing

Off-balance sheet lease financing involves leasing arrangements that are not recorded on a company's balance sheet, potentially making a company's financial condition appear stronger than it actually is.

Debt Ratio

A metric assessing a firm's leverage, determined by dividing its total liabilities by its total assets.

Lessee

A lessee is an individual or entity that leases an asset from another party, called the lessor, under the terms of a lease agreement.

Tax Effects

Tax effects refer to the impact of tax laws on an individual's or company's financial decisions and operations, affecting net income, investment choices, and cash flows.