What aspect of a lease agreement distinguishes a capital lease from an operating lease? In what ways does the accounting for capital leases differ from the accounting for operating leases?

If a company's debt-to-assets ratio increases, is it more or less likely to be able to pay the amounts it owes? If a companys times interest earned ratio decreases, has it become a better or worse credit risk?

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Distinguishing Aspect of Lease Agreement The primary distinguishing aspect between a capital lease a... View the full answer