If a financial lease analysis shows a positive result, which one of the following is true?
A)the user should own the asset.
B)the lessor should own the asset.
C)given the asset choice, the lease terms favour leasing.
D)leasing is preferable so long as there is no salvage.

Question

Quizplus · Accepted Answer

If a financial lease analysis shows a positive result, it means that leasing is financially beneficial compared to owning the asset outright. Therefore, given the asset choice, the lease terms favour leasing. This does not necessarily mean that the user should own the asset or the lessor should own the asset, or that leasing is preferable only if there is no salvage value.

If a Financial Lease Analysis Shows a Positive Result, Which