Which of the Following Is Not a Possible Advantage of Long-Term

question 45

Multiple Choice

Which of the following is not a possible advantage of long-term leases?

• A)Ability to always claim CCA and depreciation.
• B)Protection from interest rate changes.
• C)100% financing.
• D)Flexibility.

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers and replenishments.

Voucher System

A control mechanism in accounting where vouchers are used to authorize the payment of a liability; an internal control for cash disbursements.

Bank Deposit

A sum of money placed in an account with a banking institution, often earning interest.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure consistency and accuracy in financial records.