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    Financial Accounting Study Set 6
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    Exam 8: Liabilities
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    Generally a Lessee Will Prefer
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Generally a Lessee Will Prefer

Question 143

Question 143

Multiple Choice

Generally a lessee will prefer:


A) an operating lease, since it does not affect the debt ratio.
B) a capital lease, since no liability is recorded on the balance sheet.
C) a capital lease, since it does not affect the debt ratio.
D) none of the above.

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