An analyst's appropriate adjustments for operating leases would be to increase assets,increase liabilities,and increase operating income.

Question

Quizplus · Accepted Answer

An analyst's appropriate adjustments for operating leases would be to capitalize the operating lease obligations, which would result in an increase in assets and liabilities on the balance sheet, and an increase in operating income on the income statement. This adjustment would better reflect the economic reality of the lease transactions and make financial statements more comparable across companies.

An Analyst's Appropriate Adjustments for Operating Leases Would Be to Increase