If a lease is not listed as a liability on the firm's balance sheet, does it mean

Question:

If a lease is not listed as a liability on the firm's balance sheet, does it mean that a firm that leases rather than borrows is less risky?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

See More Books

Question Posted: Mar 31, 2017 02:31 PM

See More Questions

If a lease is recorded as a capital lease, what is the relationship of the lease payments and the lease liability?
List the four criteria used to determine if a lease is classified as a capital lease by the lessee.
Multiple-Choice Questions 1. Which of the following statements regarding leases is false? a. Lease agreements are a popular form of financing the purchase of assets because leases do not require a...
A firm has initial fund of $800. The market rate of return is 12%. The firm has identified good investment opportunities to invest $640 at an average 25 per cent rate of return. How much dividend...
Capaz Company completed its income statement and balance sheet for 2012 and provided the following information: In addition, Capaz bought a small service machine for $5,000. Required: 1. Present the...
How important do you feel being adept at adapting is for business firms? Explain.
Explain briefly how you discover business classes and provide an example.
Outrageous Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. The company's master budget income statement for March follows. It is based on expected sales...
(a) Explain the difference between a seed investment and a start-up investment and how they compare on risk considerations. (6 marks) (b) Both of these stages of investment are often financed...
At June 30, 2022, the end of its most recent fiscal year, Green River Computer Consultants post-closing trial balance was as follows: The company underwent a major expansion in July. New staff was...
What are some of the potential gains from leasing if the lessee plans to hold the asset for only a small fraction of its useful life?
How can a hostile acquirer get around a poison pill?
Explain whether the following statement is true, false, or uncertain: When marginal utility is decreasing, total utility is decreasing.
Paul Grant, a 40-year-old resident of Florida, was referred by his regular physician in Florida to Dr. Michael Galloway at his specialty clinic in Atlanta, Georgia. Dr. Galloway recommended surgery...
Go to three of the e-discovery websites in the "Internet Sites" and compare and contrast the services of the vendors. Which one would you use? Why?
Why do you think states have laws requiring that contracting parties have capacity to enter into a contract? Do you these laws are beneficial? Do you know anyone who has been unable to enter into a...
You are the facility services director for a small, but important, nonprofit organization that helps protect and relocate spouses who are the victims of abuse. Wanting to make an improvement to its...
Think about ways to prevent discrimination (blatant or not) during the hiring process. If you had to provide advice to those in your organization conducting the interviews, what would it be regarding...
The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. The standards per .5-gallon can of chemical call for 1.20 gallons of material and 1.50...
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
Intrinsic Value what is the intrinsic value of a call option? How do we interpret this value?
Put Options what is the value of a put option at maturity? Based on your answer, what is the intrinsic value of a put option?
Put Options what is the value of a put option at maturity? Based on your answer, what is the intrinsic value of a put option?
Reflect on a group interview you've had: * Was there anything you struggled with in preparing for the peer interviews? * What would you have changed about your interview? What would you have kept the...
Please conduct comprehensive research on the status of Metaverse, Choose a company, an industry, a product, or a service, and Share the strategies being used in Metaverse to develop a competitive...
Renovation and Restoration of community Park project For Risk management plan External risk : Budget Fluctuations in local economy Environment disasters Internal Risk: Safety Not enough money, staff...

If a lease is not listed as a liability on the firm's balance sheet, does it mean

Question:

Step by Step Answer:

Whether a lease appears on the balance sheet or not lease commitments are liabilities ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions