Operating Leases Are Preferred Over Finance Leases Because Operating Leases

question 13

True/False

Operating leases are preferred over finance leases because operating leases that exceed one year do not increase a company's debt ratio.

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Definitions:

Long-Term Disability

Insurance coverage that provides income support to individuals who are unable to work for a lengthy period due to a disabling condition or illness.

Working Income

The earnings received from employment or self-employment, often considered in the context of personal finance and taxation.

Provincial Governments

The administrative bodies governing the provinces of a country, responsible for local laws, policies, and governance within their specific geographical areas.

Long-Term Objectives

Goals or targets that an organization aims to achieve over an extended period, typically over several years.