Which Statement Is Correct in Comparing Capital Leases to Operating

Multiple Choice

Which statement is correct in comparing capital leases to operating leases?

A) A capital lease will have a higher asset turnover compared to an operating lease.
B) A capital lease will increase the return on total assets compared to an operating lease.
C) A capital lease will have a lower debt-to-equity ratio compared to an operating lease.
D) A capital lease will have a higher debt-to-equity ratio compared to an operating lease.