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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: A) B) Debt to equity Total asset turnover Higher Higher Lower Lower Lower Higher Higher Lower

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: A) B) Debt to equity Total asset turnover Higher Higher Lower Lower Lower Higher Higher Lower

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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Use attachement to answer the following 

Option D
Option A
Option B
Option C
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: A) B) Debt to equity Total asset turnover Higher Higher Lower Lower Lower Higher Higher Lower
Transcribed Image Text: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: A) B) Debt to equity Total asset turnover Higher Higher Lower Lower Lower Higher Higher Lower
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Step 13

An operating lease is an agreement to use and operate an asset without ownership.

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