S Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of recording a capital lease on these ratios is a(an):
A)Option a
B)Option b
C)Option c
D)Option d

Question

S Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of recording a capital lease on these ratios is a(an): 
A)Option a 
B)Option b 
C)Option c 
D)Option d

Quizplus · Accepted Answer

The Answer of S Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of recording a capital lease on these ratios is a(an): 
A)Option a 
B)Option b 
C)Option c 
D)Option d

S Corp Has a Rate of Return on Assets of 10