Which of statements is true about lease accounting methods

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Reference no: EM132643185

Problem 1: Which of the following statements is true about lease accounting methods? (check all that apply)

Option 1: Capital leases lead to a lower Return on Assets ratio than Operating leases

Option 2: Capital leases lead to lower Cash from Operations than Operating leases

Option 3: Capital leases have higher expenses than operating leases in the first year of the contract

Option 4: Capital leases lead to a higher Cash from Investing Activities than Operating leases

Option 5: Capital leases have higher total expenses than operating leases over the life of the contract

Reference no: EM132643185

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