An Analyst Should Consider Whether a Company Acquired Assets Through

question 53

Multiple Choice

An analyst should consider whether a company acquired assets through a capital lease or an operating lease because a company may structure:

• A) leases to be treated like capital leases to enhance its leverage ratios.
• B) leases to be treated like capital leases to enhance its cash flow.
• C) leases to be treated like operating leases to enhance its leverage ratios.
• D) leases to be treated like operating leases to enhance its cash flow.