What is the effect of treating a lease as a capital lease instead of an operating lease on the lessee's current ratio and debt ratio

A) Under a capital lease, the current ratio is lower and the debt ratio is lower.
B) Under a capital lease, the current ratio is lower and the debt ratio is higher.
C) Under a capital lease, the current ratio is higher and the debt ratio is lower.
D) Under a capital lease, the current ratio is higher and the debt ratio is higher.


B

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