It Is Usually Better to Lease a Vehicle Than Buy

question 8

True/False

It is usually better to lease a vehicle than buy one, since you are not responsible for the repairs or maintenance on a leased car.

---

Definitions:

Operating Expenses

Costs incurred in the normal course of business operations, excluding the cost of goods sold.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its operating income.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing current assets to current liabilities.

Solvency

The ability of an entity to meet its long-term financial obligations and continue its operations in the long term.