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Company a and Company B Operate in the Same Industry,where

Question 118

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Company A and Company B operate in the same industry,where leasing assets is common practice.Company A engages in more finance leases than Company B.Company B's leases are classified as operating leases,but they are essentially a form of financing as well.Both companies disclose information with respect to their leases.Which of the two companies will tend to appear stronger financially according to the balance sheet and income statement?

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Company B will tend to appear stronger f...

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