All Except Which of the Following Are Advantages of Leasing

question 18

Multiple Choice

All except which of the following are advantages of leasing?

• A) Generally lower cost than ownership
• B) Leasing smoothes out expenses
• C) Leasing may increase a firm's liquidity
• D) It provides 100% financing

---

Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash with minimal loss of value, often used for short-term investments.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Debt-To-Equity Ratio

A metric that shows the balance between the amount of a company's assets financed by owners' equity and that financed by debt.

Working Capital

Working capital represents a company's operating liquidity and is calculated as current assets minus current liabilities.