Question 13 Saunders Inc. is involved with two leases, a capital lease and an operating lease. Which of the following statements most accurately compares the ratio and financial statement effects of these leases in terms of Saunders’ fixed asset turnover ratios and return on assets, respectively? Fixed asset turnover ratio Return on assets
A.Lower for capital lease Higher for operating lease
B.Lower for capital lease Lower for operating lease
C.Higher for capital lease Higher for operating lease
D.Higher for capital lease Lower for operating lease