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Prior to CICA 3065, "Accounting for Leases", Lease Activity Was

Question 2

Multiple Choice

Prior to CICA 3065, "Accounting for Leases", lease activity was only reported in financial footnotes. This off-balance-sheet-financing made firms with:


A) operating leases appear healthier than those with no leases.
B) financial leases appear to have greater liabilities than firms using operating leases.
C) operating leases appear to have greater liabilities than firms using financial lease.
D) financial leases appear to be financially stronger than if the leases were on-balance-sheet-financing.

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