Reporting operating leases as short-term leases results in a number of distortions in the ROE disaggregation analysis.
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Question:
a. Operating income is lower.
b. Net operating asset turnover is overstated.
c. Financial leverage is understated.
d. All of the above are distortions.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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