Which of the Following Is a Valid Argument for Leasing

question 74

Multiple Choice

Which of the following is a valid argument for leasing?

• A)avoiding capital expenditure controls
• B)transferring risk
• C)preserving capital
• D)reducing leverage through off-balance-sheet financing
• E)increased resale costs

---

Definitions:

Industry Average

The standard or norm for financial or operational performance within a specified industry, used for comparison or benchmarking purposes.

Partial Balance Sheet

A financial statement that shows a company's financial position for a specific part of the accounting period, detailing assets, liabilities, and equity.

Total Current Assets

The aggregate amount of all assets expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business.

Assets Due

Typically refers to amounts or assets scheduled for receipt or payment within a predefined period; however, "Due" often relates to liabilities (e.g., accounts payable). NO precise term called "Assets Due" in standard financial terminology without further context.