PM Sys Constant setup - Lease classification - Finance/operating

JDE E1 Tool release is 9.2.8.2

For using Financial module - since we do not have licensing for real estate module. We are using the B/S Lessee accounting, could we use Finance or operating lease as the classification. Reading the documents Finance lease if selected, entries will be impacted on the B/S. How about if Operating leases is selected, will this also be shown on the B/S. please could you let me know the difference between Finance /Operating here in this selection, and if both selection is applicable using Financial module. I see that Activate B/S accounting if checked then this flag determines whether the lessee