Prior to FASB 13,"Accounting for Leases",lease Activity Was Only Reported

Prior to FASB 13,"Accounting for Leases",lease activity was only reported in financial footnotes. This off-balance-sheet-financing made firms with:

A) capital leases appear financially stronger than firms that used debt to purchase the asset.
B) operating leases appear financially stronger than firms that used debt to purchase the asset.
C) leases of any type appear financially stronger than firms that used debt to purchase the asset.
D) All of these.
E) None of these.

Correct Answer:

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