If You Are Analyzing a Firm's Financial Position, You Should

If you are analyzing a firm's financial position, you should:

A) Completely ignore any financial leases in which the firm is involved.
B) Completely ignore any operating leases since they do not affect the balance sheet.
C) Consider the effects of an operating lease only if it is recorded as a liability on the firm's balance sheet.
D) Ignore the operating leases since the amount shown as a liability is offset by an equal amount recorded as an asset of the firm.
E) Consider the effects that all of the operating leases may have on the firm.