From the lessee’s perspective, in the earlier years of a lease, the use of the

Finance

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From the lessee’s perspective, in the earlier years of a lease, the use of the

a. capital method will enable the lessee to report higher income, compared to the operating method.
b. capital method will cause debt to increase, compared to the operating method.
c. operating method will cause income to decrease, compared to the capital method.
d. operating method will cause debt to increase, compared to the capital method.

Answer: capital method will cause debt to increase, compared to the operating method

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