Question:Which of the following is a reason that lessees prefer operating leases? 

A Capital leases result in an increased debt-equity ratio. 
B Capital leases result in earlier recognition of expenses. 
C Operating leases result in the non-recognition of lease assets and lease liabilities. 
D All of these are reasons that lessees prefer operating leases. 

+ Answer
C 

+ Explanation
Answer not sure

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Md. Habib Ullah

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