When the Total Expenses Over the Life of an Operating

question 62

Multiple Choice

When the total expenses over the life of an operating lease are compared to the total expenses over the life of a finance lease, one will find that:

• A) The expenses of a finance lease are greater than the expenses of the operating lease.
• B) The expenses of the finance lease and operating lease are equal.
• C) The expenses of an operating lease are greater than the expenses of a finance lease.
• D) No meaningful comparison can be made.

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