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

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Definitions:

Industrialists

Entrepreneurs or business owners in the industrial sector, who played a significant role in the development and expansion of industries during the Industrial Revolution.

Avant-Garde

Innovative, pioneering work, particularly in the arts, that challenges established norms and practices, often aiming to push the boundaries of cultural expression.

Marxist Socialists

Ideologists who follow the teachings of Karl Marx, advocating for a society without classes where the means of production are owned collectively.