Managers will often have strong incentives to favour operating leases over finance leases. This is because: Select one: O operating leases are recorded on the balance sheet. This results in an increased debt ratio and a lower return on total assets O finance leases are recorded on the balance sheet. This results in a decreased debt ratio and a lower return on total assets O None of the given options are correct. Managers do not prefer operating leases o finance leases are recorded on the balance sheet. This results in an increased debt ratio and a lower return on total assets