From the lessee’s perspective compared to an oper
From the lessee’s perspective, compared to an operating lease, a finance lease results in:
A.higher asset turnover.
B.a higher debt-to-equity ratio.
C.lower operating cash flow.
参考解答
Ans:B.
Operating leases are not recognized as liabilities and therefore the debt-to-equity ratio will be lower than a similar finance lease.Capitalizing a lease will increase the asset base and decrease asset turnover.Lease capitalization decreases the operating cash outflow and therefore increases operating cash flows (all else equal).
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