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.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe30b56d3-2816-40f0-b495-dd3cb7a745cf%2Fd83a65af-c70e-4e73-916b-c8a41cd630cf%2Foor6ww8_processed.jpeg&w=3840&q=75)
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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