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The accounting treatment of operating leases changed effective 2019 and companies now recognize an asset and liability related to operating leases. Companies did not want
The accounting treatment of operating leases changed effective 2019 and companies now recognize an asset and liability related to operating leases. Companies did not want to be required to treat their operating leases as creating an asset and a liability. Other than the debt to equity ratio, identify at least two more ratios that will be less favorable now that the operating leases lead to assets and liabilities that are recognized on the balance sheet. Explain why they will be less favorable.
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