How Are Operating Leases Reported in the Lessee's Financial Statements

Multiple Choice

How are operating leases reported in the lessee's financial statements?
I. As an asset that is depreciated, similar to the company's other assets
II. As a footnote disclosure
III. As either a short-term or long-term liability, depending on the length of the lease

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