Use the following statements to answer this question:
A) I and II are correct.
B) I and II are incorrect.
C) I is correct and II is incorrect.
D) I is incorrect and II is correct.
I.Operating leases lower the level of debt on your balance sheet.
II.One of the motivations of leasing is specialization in certain fields.

Question

Quizplus · Accepted Answer

I is correct as operating leases do not appear as a liability on the balance sheet, which therefore lowers the level of debt shown. 
II is also correct as one motivation of leasing is to specialize in certain fields by selecting equipment or facilities best suited for the company's needs.

Use the Following Statements to Answer This Question