Which of the Following Are Advantages of Leasing

question 59

Multiple Choice

Which of the following are advantages of leasing?

• A) A lease obligation may be substantially more restrictive than the provisions of a bond indenture.
• B) There is a down payment like a purchase.
• C) The negative effects of obsolescence may be reduced.
• D) The ability to use the leased asset as collateral in a bond.

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Definitions:

Partnership

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its own rights, privileges, and liabilities independent of its shareholders.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.

Accounting Records

Documents and books that keep track of all financial transactions of an entity.