Directions: Choose the Best Answer Based on the Information You

question 9

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter 5. ​ When you want to sort details into categories, use a

• A)cause-effect organizer
• B)Venn diagram
• C)line diagram
• D)all of the above

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Definitions:

Net Advantage to Leasing

The total financial benefit that a business might achieve from leasing assets rather than purchasing them, considering all costs and savings.

Purchase Price

This is the amount of money paid to buy a good, service, or financial asset.

Straight-Line Depreciation

A strategy for spreading out the expenditure of a tangible asset over the duration of its usefulness in uniform annual amounts.

Break-Even Lease Payment

The lease payment amount at which the cost of leasing equals the cost of purchasing the asset.