Compared to a firm with a capital lease,operating leases help the lessee firm earn
A)higher asset turnover ratio.
B)lower return on assets.
C)higher debt-to-equity ratio.
D)lower NOPAT.

Question

Quizplus · Accepted Answer

Operating leases do not require the lessee to record the leased asset as a liability on their balance sheet, resulting in lower total assets and higher asset turnover ratio.

Compared to a Firm with a Capital Lease,operating Leases Help