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.

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Definitions:

Income Statement Information

Income Statement Information includes the revenues, expenses, and profits or losses of a company over a specified period, depicting its financial performance.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, typically a fiscal quarter or year, resulting in a net profit or loss.

Profitability

The degree to which a business or activity yields profit or financial gain, measured by the ability to generate income greater than the related expenses.

Capital Maintenance Method

An accounting concept that defines profit as the amount that can be distributed while maintaining the capital of the company.