Recording a Long-Term Lease as an Operating Lease, as Opposed

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: $$\begin{array} { | l | c | c | } \hline & \text { Debt/Equity } & \text { Total Asset Turnover } \\\hline \text { A) } & \text { Higher } & \text { Lower } \\\hline \text { B) } & \text { Higher } & \text { Higher } \\\hline \text { C) } & \text { Lower } & \text { Higher } \\\hline \text { D) } & \text { Lower } & \text { Lower } \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

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