Which of the Following Is NOT a Reason for Leasing

question 46

Multiple Choice

Which of the following is NOT a reason for leasing rather than purchasing an asset?

• A) Avoiding a significant cash outlay for a down payment
• B) Avoiding the risks of obsolescence
• C) Avoiding the recognition of additional debt on the balance sheet
• D) All of these are reasons for leasing rather than purchasing an asset

---

Definitions:

Deposit

An amount of money placed in an account, typically to keep it safe or to earn interest.

Annual Contributions

The amount of money contributed to a particular account or investment over the course of a year.

Savings Plan

A scheme that encourages regular saving with a bank or financial institution, often linked with benefits such as interest or investment returns.

Effective Rate

A comprehensive annual rate that accounts for compounding, often used in finance and investments to provide a true comparison among different financial products.