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If a company leases equipment to other companies and records these leases as operating leases rather than a capital leases, its' (the lessor's):

I. recorded liabilities will be lower
II. recorded assets will be higher
III. total cash flows will be higher
IV. leverage ratios will be higher

A) I and III
B) II and IV
C) I only
D) II, III and IV

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413990

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