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Recording a Long-Term Lease as an Operating Lease, as Opposed

Question 19

Multiple Choice

Recording a long-term lease as an operating lease, as opposed to a capital lease, for a lessee will cause the following ratios to be:  Debt/Equity  Total Asset Turnover  A)   Higher  Lower  B)   Higher  Higher  C)   Lower  Higher  D)   Lower  Lower \begin{array} { | l | c | c | } \hline & \text { Debt/Equity } & \text { Total Asset Turnover } \\\hline \text { A) } & \text { Higher } & \text { Lower } \\\hline \text { B) } & \text { Higher } & \text { Higher } \\\hline \text { C) } & \text { Lower } & \text { Higher } \\\hline \text { D) } & \text { Lower } & \text { Lower } \\\hline\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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