If a lease is capitalized, the present value of the lease payments is put on the firm's balance sheet as a liability.
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Q7: Operating leases are examples of off‑the‑balance‑sheet financing.
Q8: A prime reason for leasing is to
Q9: The lessor depreciates the equipment while the
Q10: All term loans are supported by collateral.
Q11: Term notes sold to the general public
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Q13: If a firm has a need for
Q14: The residual value (i.e., salvage value) reduces
Q15: The larger an asset's salvage value (i.e.,
Q16: An operating lease generally does not have
Q17: The lessor owns the asset while the
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