If a Company Leases Equipment to Other Companies and Records

If a company leases equipment to other companies and records these leases as operating leases rather than capital leases, its:

I. recorded liabilities will be lower.
II. recorded assets will be higher.
III. total cash flows will be higher.
IV. debt to equity ratios will be lower.

A) I and III
B) II and IV
C) I only
D) II, III, and IV