Which One of the Following Statements Is Correct

question 59

Multiple Choice

Which one of the following statements is correct?

• A) The lessor is primarily concerned with returning the asset at the end of the lease term without incurring any additional charges.
• B) The lessor is primarily concerned about the use of the asset.
• C) If a computer manufacturer leased computers it built to others, it would be engaging in leveraged leasing.
• D) A firm should always purchase, rather than lease, any asset that has a projected positive salvage value at the end of the relevant period of use.
• E) Lessors provide a source of financing for lessees.

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Definitions:

Pension Plan

A retirement plan funded by employers or employees, or both, paying out a fixed sum to retirees, often based on salary and years of service.

AGI

Short for Adjusted Gross Income; it is your gross income after adjustments and deductions, crucial for tax calculations.

Deductible IRA Contribution

A contribution to an Individual Retirement Account that can be subtracted from gross income, reducing taxable income.

Pension Plan

A retirement savings plan provided by an employer which guarantees a specified income to the employee upon retirement.