Which of the Following Is an Advantage of a Car

question 33

Multiple Choice

Which of the following is an advantage of a car lease?

• A) A large down payment is required.
• B) At the end of the lease, you have no ownership interest in the vehicle.
• C) The capitalized cost is usually higher than the list price.
• D) Monthly lease payments are usually lower than monthly financing payments.
• E) The total cost of a lease may be higher than a purchase.

---

Definitions:

Operating Loss

A situation where a company's operating expenses exceed its gross profits, indicating a negative profitability from business operations.

Year 2

Refers to the second year of a specific period, often used in the context of financial and performance analysis over time.

Absorption Costing

A method in accounting that adds all the manufacturing-related expenses like direct materials, direct labor, and all types of overhead (both variable and fixed) to the cost of a product.

Net Operating Income

Profit generated from a company's core business operations, excluding costs and income from non-operational activities.