What Are the Three Types of Expenses That a Lessee

question 3

Multiple Choice

What are the three types of expenses that a lessee experiences with a capital lease?

• A)Lease expense,executory costs,interest expense.
• B)Depreciation expense,lease expense,interest expense.
• C)Executory costs,lease expense,depreciation expense.
• D)Depreciation expense,interest expense,executory costs.

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Definitions:

Rate Of Inflation

The increase speed of overall service and product prices, which in turn, lowers the capacity to make purchases.

Probability Range

This term describes the spread within which a particular event is expected to occur, expressed in terms of probability.

Loss Chance

The probability or likelihood that an investment will yield a return lower than the original investment.

Capital Gains

The profit from the sale of an asset or investment, where the sale price exceeds the purchase price.