If you are analyzing a firm's financial position, you should: Question 19 options: ...
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Finance
If you are analyzing a firm's financial position, you should:
Question 19 options:
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Completely ignore any financial leases in which the firm is involved.
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Completely ignore any operating leases since they do not affect the balance sheet.
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Consider the effects of an operating lease only if it is recorded as a liability on the firm's balance sheet.
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Ignore the operating leases since the amount shown as a liability is offset by an equal amount recorded as an asset of the firm.
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Consider the effects that all of the operating leases may have on the firm.
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