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In the Earlier Years of a Lease, from the Lessee's

Question 37

Multiple Choice

In the earlier years of a lease, from the lessee's perspective, the use of the


A) finance method will enable the lessee to report higher income, compared to the operating method.
B) finance method will cause debt to increase, compared to the operating method.
C) operating method will cause income to decrease, compared to the finance method.
D) operating method will cause debt to increase, compared to the finance method.

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