What Is the Result of the On-Balance Sheet Treatment of a Lease

question 24

Multiple Choice

What is the result of the on-balance sheet treatment of a lease?

• A) Increased return on total assets and decreased debt ratio
• B) Increased earnings per share and decreased debt ratio
• C) Increased return on total assets and increased debt ratio
• D) Decreased return on total assets and increased debt ratio

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Definitions:

Discount

A reduction from the usual cost of something, typically for promotional reasons or to incentivize purchase.

Article

A written composition on a particular topic, often published in a newspaper or magazine.

Discount Period

The window of time in which a payment can be made at a reduced rate.

Welfare

Governmental support aimed at ensuring the basic physical and material well-being of individuals, often including provisions for health care, education, and housing.