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

question 13

Multiple Choice

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

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Definitions:

Customer Measures

Metrics or indicators used to evaluate the satisfaction, loyalty, retention, and acquisition of customers within a business.

Internal Business Process Measures

Metrics used to evaluate and improve the efficiency and effectiveness of a company's internal operations.

Learning and Growth Measures

are metrics used to evaluate the effectiveness of strategies aimed at creating long-term value through employee development and organizational improvement.

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization by monitoring performance against strategic goals.