Prior to FASB No.13,leasing Could Be Used

question 28

Multiple Choice

Prior to FASB No.13,leasing could be used

• A) to finance assets used in the firm without balance sheet consequences.
• B) but lease payments were not expensed on the income statement.
• C) only by largest corporations.
• D) but its advantages were fewer than under the present standard.

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Definitions:

Subsidies

Financial support extended by the government to an economic sector, business, or individual, aimed at promoting beneficial activities or reducing costs.

Indirect Benefits

Advantages or gains that occur as a secondary effect of an action, activity, or policy, often not immediately apparent.

State-Supported Company

A business that receives special advantages, funding, or backing from the government.

Indirect Benefits

Advantages or gains not directly attributed to a particular action or investment but occurring as a secondary effect.