Left:2:40:15 Chris Diaz: Attempt 1 Question 7 (Mandatory) (4 points) Failure to capitalize leased assets and liabilities when they should be capitalized results in a number of distortions in the financial statements. Which of the following is not a distortion? Financial leverage is understated. Reported expense is lower in the early years of a capital lease relative to an operating lease, but is higher in later years. Debt to equity ratio is understated. All of the above are distortions