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Assume that a company has an operating lease that will be reclassified as a capital...

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Question

Accounting

Assume that a company has an operating lease that will be reclassified as a capital lease. Which of the following correctly describes an effect this will have on the company?

a.

Its depreciation expense will decrease.
b.

Its Accounts Receivable Turnover Ratio will decrease.
c.

Its earnings per share will decrease.
d.

Its current ratio will decrease.

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