Which of the Following Statements Regarding Capital Leases Is FALSE

Which of the following statements regarding capital leases is FALSE?

A) Because capital leases increase the apparent leverage on the firm's balance sheet,firms sometimes prefer to have a lease categorized as an operating lease to keep it off the balance sheet.
B) The firm does not report the present value of the future lease payments as a liability on the balance sheet.
C) The asset acquired is listed on the lessee's balance sheet,and the lessee incurs depreciation expenses for the asset.
D) They are viewed as an acquisition for accounting purposes.