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Recording a Long-Term Lease as an Operating Lease, as Opposed  Debt to equity Total asset turnover \begin{array} { l c c } &\underline{ \text { Debt to equity} } &\underline{ \text { Total asset turnover }} \\\end{array}

Question 17

Multiple Choice

Recording a long-term lease as an operating lease, as opposed to a capital lease, for a lessee will cause the following ratios to be:  Debt to equity Total asset turnover \begin{array} { l c c } &\underline{ \text { Debt to equity} } &\underline{ \text { Total asset turnover }} \\\end{array}
A.  Higher  Lower \begin{array} { l c c } & \text { Higher } &\quad\quad\quad\quad \text { Lower } \\\end{array}
B.  Higher  Higher \begin{array} { l c c } & \text { Higher } &\quad\quad\quad\quad \text { Higher } \\\end{array}
C.  Lower  Higher \begin{array} { l c c } & \text { Lower } &\quad\quad\quad\quad \text { Higher } \\\end{array}
D.  Lower  Lower \begin{array} { l c c } & \text { Lower } &\quad\quad\quad\quad \text { Lower }\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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