Heavy use of off-balance sheet lease financing will tend to a. have no effect on either...

 

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Heavy use of off-balance sheet lease financing will tend to a. have no effect on either cash flows or risk because the cash flows are already reflected in the income statement. b. affect a company's cash flows but not its degree of risk. c. make a company appear more risky than it actually is because its stated debt ratio will be increased. d. affect the lessee's cash flows but only due to tax effects. e. make a company appear less risky than it actually is because its stated debt ratio will appear lower. Heavy use of off-balance sheet lease financing will tend to a. have no effect on either cash flows or risk because the cash flows are already reflected in the income statement. b. affect a company's cash flows but not its degree of risk. c. make a company appear more risky than it actually is because its stated debt ratio will be increased. d. affect the lessee's cash flows but only due to tax effects. e. make a company appear less risky than it actually is because its stated debt ratio will appear lower.

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The right answer is e make a company appear less r... View the full answer