Which Statement Best Describes Leases

Which statement best describes leases?

A) Firms that use off-balance sheet financing, such as leasing, would show lower debt ratios if the effects of their leases were reflected in their financial statements.
B) Capitalizing a lease means that the firm issues equity capital in proportion to its current capital structure, in an amount sufficient to support the lease payment obligation.
C) The fixed charges associated with a lease can be as high as, but never greater than, the fixed payments associated with a loan.
D) A key difference between a capital lease and an operating lease is that with a capital lease, the lease payments provide the lessor with a return of the funds invested in the asset plus a return on the invested funds, whereas with an operating lease the lessor depends on the residual value to realize a full return on the investment.