Which One of the Following Statements Concerning Operating and Financial

Which one of the following statements concerning operating and financial leases is correct?

A) A firm that is restricted from issuing more debt by a bond covenant, should enter a financial lease rather than an operating lease.
B) An operating lease increases the debt-equity ratio of a firm.
C) An operating lease must be reported on the balance sheet of the lessee.
D) A financial lease reduces the net equity in a firm.
E) A financial lease increases the total debt of a firm.