Which of the Following Statements Regarding Leases Is CORRECT

Which of the following statements regarding leases is CORRECT?

A) Capital leases are favored over operating leases because capital leases lower the debt ratio.
B) A debit balance in the Leased Asset account on the balance sheet indicates an operating lease.
C) Title is transferred to the lessee at the end of an operating lease term.
D) If a lease does not meet one of the four exact criteria provided by U.S. GAAP guidelines, it is classified as an operating lease by default.