Final answer:
The inclusion of leases on the balance sheet as an asset and liability has lowered firms' debt to asset ratio. option a.
Step-by-step explanation:
The statement is true. The inclusion of leases on the balance sheet as an asset and liability can lower a firm's debt to asset ratio. This is because leases are considered obligations that the firm has to fulfill over time, which impacts the overall debt level of the company. The statement is true. The inclusion of leases on the balance sheet as an asset and liability can lower a firm's debt to asset ratio. This is because leases are considered obligations that the firm has to fulfill over time, which impacts the overall debt level of the company. By recognizing leases as both assets and liabilities, the debt to asset ratio may decrease, as the assets increase.