Why Do Lessees Tend to Prefer the Operating Lease Method

Why do lessees tend to prefer the operating lease method to the capital lease method?

A) The capital lease method results in larger long-term debt and debt-equity ratios during the life of a lease than the operating lease method.
B) A larger debt ratio makes a firm appear more risky.
C) The operating lease method recognizes expense more slowly over the life of the lease than the capital lease method.
D) all of the above
E) none of the above

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