Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 10 - Reporting and Analyzing Liabilities - Questions: 22

Answer

The option available is operating lease. Operating leases are treated like rental lease and remains off the Balance sheet.

Work Step by Step

Therefore this will not have any effect on liquidity and solvency ratios.
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