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From the lessees perspective, in the earlier years of a lease, A finance leases will cause debt to increase, compared to operating leases. B finance

From the lessees perspective, in the earlier years of a lease,

A

finance leases will cause debt to increase, compared to operating leases.

B

finance leases will enable the lessee to report higher income, compared to operating leases.

C

operating leases will cause income to increase, compared to finance leases.

D

operating leases will cause debt to increase, compared to finance leases.

In your answer, please give a thorough explanation and justification for your answer. Include examples and journal entries to support your answer.

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