Which of the following is not a reason for leasing?
A)Leasing provides the lessor with insurance against obsolescence
B)Leasing can reduce taxable income
C)Leasing can be a source of off-balance-sheet financing, provided certain conditions are met
D)A company can obtain financing easier by the leasing company retaining title to the asset

Question

Quizplus · Accepted Answer

Leasing does not provide the lessor with insurance against obsolescence; rather, it is the lessee who benefits from not having to bear the risk of the asset becoming obsolete.

Which of the Following Is Not a Reason for Leasing