Suppose That You Are at the End of Your Automobile

question 82

Multiple Choice

Suppose that you are at the end of your automobile lease. The leasing company has just informed you that the car's market value is greater than its residual value and they will be sending you a refund. What type of lease did you have?

• A) closed-end lease
• B) open-end lease
• C) walk-away lease
• D) residual lease
• E) none of the above

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Definitions:

Accounts Receivable Balance

The Accounts Receivable Balance is the total amount of money owed to a company by its customers for goods or services delivered on credit.

Month of Sale

The specific month in which a transaction or sale of goods or services took place.

Accounts Receivable Period

The average number of days it takes for a business to collect payments from its credit sales, indicating the efficiency of its credit and collection policies.

Cash Balance

A measure of the amount of cash that a company, or an individual, has on hand at any given time.