Question
What is the immediate impact on the return on assets (ROA) of a lessee when the lessee records the following lease? a. ROA increases when
What is the immediate impact on the return on assets (ROA) of a lessee when the lessee records the following lease?
a. | ROA increases when the lessee records a finance lease, and ROA decreases when the lessee records an operating lease. | |
b. | ROA decreases when the lessee records a finance lease, and ROA decreases when the lessee records an operating lease. | |
c. | ROA decreases when the lessee records a finance lease, and ROA increases when the lessee records an operating lease. | |
d. | ROA increases when the lessee records a finance lease, and ROA increases when the lessee records an operating lease. | |
e. | ROA does not change when the lessee records a finance lease or an operating lease. |
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