When the Total Expenses Over the Life of an Operating

question 114

Multiple Choice

When the total expenses over the life of an operating lease are compared to the total expenses over the life of a capital lease,one will find that:

• A)The expenses of a capital lease are greater than the expenses of the operating lease.
• B)The expenses of the capital lease and operating lease are equal.
• C)The expenses of an operating lease are greater than the expenses of a capital lease.
• D)No meaningful comparison can be made.

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