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Current Attempt in Progress Which statement is correct in comparing capital leases to operating leases? OA capital lease will have a higher debt-to-equity ratio compared to an operating lease. OA capital lease will increase the return on total assets compared to an operating lease. A capital lease will have a lower debt-to-equity ratio compared to an operating lease. A capital lease will have a higher asset turnover compared to an operating lease.

Current Attempt in Progress Which statement is correct in comparing capital leases to operating leases? OA capital lease will have a higher debt-to-equity ratio compared to an operating lease. OA capital lease will increase the return on total assets compared to an operating lease. A capital lease will have a lower debt-to-equity ratio compared to an operating lease. A capital lease will have a higher asset turnover compared to an operating lease.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Attempt in Progress Which statement is correct in comparing capital leases to operating leases? A capital lease will have a higher debt-to-equity ratio compared to an operating lease. OA capital lease will increase the return on total assets compared to an operating lease. A capital lease will have a lower debt-to-equity ratio compared to an operating lease. A capital lease will have a higher asset turnover compared to an operating lease.
Transcribed Image Text:Current Attempt in Progress Which statement is correct in comparing capital leases to operating leases? A capital lease will have a higher debt-to-equity ratio compared to an operating lease. OA capital lease will increase the return on total assets compared to an operating lease. A capital lease will have a lower debt-to-equity ratio compared to an operating lease. A capital lease will have a higher asset turnover compared to an operating lease.
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