Disadvantages of Leasing Include All Except Which of the Following

question 21

Multiple Choice

Disadvantages of leasing include all except which of the following?

• A) Leasing usually decreases a firm's liquidity
• B) Leasing is often more expensive than purchasing
• C) Loss of the asset's salvage value
• D) Lessee may have difficulty getting approval to make property improvements on leased real estate

---

Definitions:

Salaries And Wages

Compensation received by employees for services performed, typically paid on an hourly or annual basis.

Encumbrance

A claim against a property by a party that is not the owner, often impacting the property’s use or transfer until the encumbrance is lifted.

Eligibility Requirements

Criteria that must be met in order to qualify for a specific program, service, or status.

Nonexchange Transactions

Transactions where an entity receives value without directly giving or promising equivalent value in exchange.