Why Would a Lessee Rather Have an Operating Lease Than

question 62

Multiple Choice

Why would a lessee rather have an operating lease than a capital lease?

• A)operating leases do not require reporting long-term liabilities.
• B)capital leases would require larger lease payments
• C)operating leases permit a tax deduction for depreciation
• D)noncancelable operating leases involve less risk

---

Definitions:

Career Ladders

Structured sequences of job positions through which an individual can progress within an organization, typically associated with increased responsibility and rewards.

Functional Departmentation

The process of organizing an organization's structure based on specialized functions such as marketing, finance, and operations.

Functional Departmentation

The process of organizing an organization's structure based on specialized functions or tasks such as marketing, finance, or operations.

Coordination

The method of coordinating individuals or teams to ensure they collaborate effectively and efficiently.