GAAP identifies two different approaches in reporting leases by the lessee: operating lease method and the finance lease method.

Which option best describes the financial statement effects of leasing on the financial statements of the lessee?

A) B) \begin{tabular}{llll} \hline Lease Type & Assets & Liabilities & Expenses \\ \hline Operating & Increased & Increased & Lease expense \\ \hline Lease Type & Assets & Liabilities & Expenses \\ \hline Finance & Increased & Increased & Lease expense \\ \hline Lease Type & Assets & Liabilities & Expenses \\ \hline Finance & None & None & Amortization and interest \\ \hline Lease Type & Assets & Liabilities & Expenses \\ \hline Operating & None & None & Lease expense \end{tabular}