Lessees Prefer to Account for Their Leases as Operating Leases

question 20

Multiple Choice

Lessees prefer to account for their leases as operating leases because:

• A)This decreases the amount of liability reported
• B)This increases their debt to total equity ratio
• C)This decreases the income tax expense.
• D)This increases the amount of total assets.

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Definitions:

Stakeholders

Individuals or groups with an interest or concern in the success of an organization, project, or endeavor.

Sales Promotion

A marketing strategy that involves short-term incentives to encourage the purchase or sale of a product or service.

Rebates

Refunds offered to consumers as an incentive to purchase a product or service.

Marketers

Marketers are professionals or organizations responsible for promoting, selling, and distributing products or services, often focusing on understanding consumer needs and creating strategies to meet those needs effectively.