A financial lease is similar to an operating lease, since
A) in both cases the lessee has the use of the asset
B) in both cases the lease has a maintenance contract
C) the lessee owns the asset
D) the lease payment is not tax deductible
Correct Answer:
Verified
Q24: Capitalizing a lease
A) reduces income
B) reduces equity
C)
Q25: A firm could buy an asset for
Q26: If a lease is not capitalized,
1) the
Q27: A financial lease is similar to an
Q28: A firm could buy an asset for
Q29: A firm could lease the equipment in
Q30: If a term loan requires equal annual
Q31: Features of a term loan include
1) restrictive
Q33: If a firm leases instead of borrowing,
Q34: In a sale and leaseback
A) the lessee
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