When Compared with a Company Recording an Asset as a Capital

question 107

Multiple Choice

When compared with a company recording an asset as a capital lease, the return-on-assets (ROA) and debt-to-equity for a company using an operating lease are: $$\begin{array} { l l l } & \text { ROA } & \text { Debt-to-equity } \\\hline\text { A) } & \text { Higher } & \text { Higher } \\\text { B) } & \text { Higher } & \text { Lower } \\\text { C) } & \text { Lower } & \text { Higher } \\\text { D) } & \text { Lower } & \text { Lower }\end{array}$$

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

---

Definitions:

Culture Theory

The assertion that some prejudice is healthy and part of all cultures.

Patriarchal

Relates to a social system or society where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Scapegoat Theory

A social psychological term that explains aggression or hostility towards others by blaming them for one's own problems, often leading to unfair punishment or discrimination.

Racialization

The process by which societies construct races as real, different, and unequal in ways that matter to economic, political, and social life.