One Way to Acquire Financing on Existing Equipment Is to Sell

question 38

True/False

One way to acquire financing on existing equipment is to sell that equipment back to the dealer and then repurchase it under a payment contract.

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Definitions:

Implicit Costs

Non-monetary opportunity costs, such as time or foregone alternatives, not directly accounted for in financial transactions.

Explicit Costs

Direct, out-of-pocket payments for expenses such as wages, rent, and materials, which are easily quantifiable.

Accountants

Professionals who manage financial records, conduct audits, and ensure tax compliance, playing a pivotal role in financial planning and analysis.

Accounting Profit

The difference between total monetary revenue and total monetary costs, and is calculated by subtracting explicit costs from total revenue.