Which of the following statements is FALSE?
A) The lease-equivalent loan is the loan that is required on the purchase of the asset that leaves the purchaser with the same obligations as the lessor would have.
B) Lease obligations themselves could trigger financial distress.
C) When a firm enters into a lease, it is committing to lease payments that are a fixed future obligation of the firm.
D) When a firm leases an asset, it is effectively adding leverage to its capital structure (whether or not the lease appears on the balance sheet for accounting purposes).
Answer: A
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A) cost of direct materials used B) depreciation on factory equipment C) salary of sales personnel D) depreciation on office furniture
What is accomplished by adding a caption to a visual aid?
A) A short description is provided that identifies the content of the visual. B) An additional discussion of the visuals content is included. C) A short description of the purpose of the visual is included. D) An explanation of various colors and symbols is provided. E) An explanation of the significance of the visual is provided.