Solved

Rick Is an Accountant

Question 89

Matching

Rick is an accountant. His boss has asked him to make a recommendation about buying or leasing new computer equipment for the accounting department. A decision has already been made to acquire a particular type of equipment. The only remaining decision is whether the equipment will be purchased or leased. Several pieces of information Rick might consider in his decision are listed below. Indicate whether each of the following items is:
a. relevant or
b. irrelevant to the decision.

Premises:
tax incentives to lease
future reliability of new equipment
cost of purchasing new equipment
trade-in value of old equipment
training costs for operating new computer
independent quality ratings on new equipment
interest rate for lease
future depreciation rates
depreciation on old equipment
cost of current computer equipment
Responses:
irrelevant to the decision.
relevant or

Correct Answer:

tax incentives to lease
future reliability of new equipment
cost of purchasing new equipment
trade-in value of old equipment
training costs for operating new computer
independent quality ratings on new equipment
interest rate for lease
future depreciation rates
depreciation on old equipment
cost of current computer equipment
Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents