If a lessee mistakenly treats a capital lease as an operating lease,both assets and liabilities would be understated at the inception of the lease.
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Q13: When accounting for an operating lease,interest expense
Q14: Loan covenants are one reason lessees prefer
Q15: When accounting for an operating lease,a liability
Q16: Compared to a firm with a capital
Q17: To remain in accordance with GAAP,operating leases
Q19: When accounting for an operating lease,depreciation expense
Q20: If a lease contains a residual value
Q21: The current ratio will be lower over
Q22: For tax purposes lessees prefer operating leases.
Q23: The lessor's Gross investment in leased asset
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