From the Lessee's Viewpoint, All of the Following Are Advantages

question 98

Multiple Choice

From the lessee's viewpoint, all of the following are advantages of leasing except that

• A)if a lease is recorded as a capital lease, the calculated rate of return on the total assets ratio and the current ratio will be improved
• B)a lease agreement may reduce the risk of obsolescence for a lessee
• C)in many cases, an asset may be leased without requiring the lessee to make a substantial down payment
• D)the lessee may be able to claim larger tax deductions through leasing the asset than if the asset were purchased

---

Definitions:

Confidence Interval

A range of values derived from sample statistics that is likely to contain the true value of an unknown population parameter.

Null Hypothesis

In statistics, a hypothesis that proposes no significant difference or effect; the hypothesis that a researcher tries to disprove.

Alpha Level

The threshold of significance in hypothesis testing, representing the probability of making a Type I error.

Confidence Interval

A range of values, derived from sample statistics, used to estimate the true parameter of a population with a specified level of confidence.