Which One of the Following Is a Valid Statement About

question 62

Multiple Choice

Which one of the following is a valid statement about leasing in Canada?

• A)less than 5% of machinery and equipment in Canada is leased.
• B)lessors prefer to keep equipment at the end of a lease in order to lease it again.
• C)lessees typically purchase the asset at the end of the lease.
• D)operating leases are particularly useful in the long term.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.

Simple Interest

Interest that is computed solely on the initial sum invested or loaned, not taking into account any accumulated interest from previous periods.

Face Value

The nominal or dollar value printed on a security or financial instrument, representing its value upon maturity or redemption.

Treasury Bill

A short-term government security issued at a discount from the face value and yielding the face value upon maturity.