Leasing was called off balance sheet financing

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Reference no: EM13947233

Which of the following statements is most correct?

A. Some years ago leasing was called “off balance sheet financing” because the leased asset and the corresponding lease obligation did not appear directly on the balance sheet. Today, though, that situation has changed materially because all leases must be capitalized and reported on the balance sheet, along with the value of the leased asset.

B. In a lease-versus-purchase analysis, cash flows should generally be discounted at the weighted average cost of capital (WACC).

C. Each of the above statements is true.

D. Each of the above statements is false.

Reference no: EM13947233

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