Generally a Lessee Will Prefer

question 143

Multiple Choice

Generally a lessee will prefer:

• A)an operating lease, since it does not affect the debt ratio.
• B)a capital lease, since no liability is recorded on the balance sheet.
• C)a capital lease, since it does not affect the debt ratio.
• D)none of the above.

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Definitions:

Single-use Plans

Plans developed to achieve a set of goals that are unlikely to be repeated in the future. They are specific, unique, and not intended for recurring use.

Functional Plans

Functional plans are detailed strategies developed for specific areas within an organization, such as sales, marketing, or HR, outlining how goals will be achieved in those areas.

Operational Plans

Detailed, short-term strategies designed to achieve specific objectives within a business.

Standing Plans

Established procedures or policies in an organization that guide decision-making and actions for recurring situations or operations.