Disadvantages of Leasing a Vehicle Include All of the Following

question 55

Multiple Choice

Disadvantages of leasing a vehicle include all of the following, except

• A) no equity in the car.
• B) cost of finding a buyer for the car at the termination of the lease.
• C) responsibility for maintenance costs.
• D) additional charges beyond the monthly lease payments.

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Definitions:

Credit Sales

Sales made by a business where payment is delayed, allowing the customer to purchase goods or services on account.

Accrual Basis

The Accrual Basis of accounting records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Rent Expense

The cost incurred from leasing a space, property, or equipment for business operations or personal use over a specified time period.

Prepaid Rent

A payment made for rent before it is due, recorded as an asset on the balance sheet and expensed over the period of use.