Which of the Following Is Not a Reason Why Some

question 96

Multiple Choice

Which of the following is not a reason why some companies lease rather than buy?

• A)Leasing may allow you to borrow with little or no down payment.
• B)Leasing can improve the balance sheet by reducing long-term debt.
• C)Leasing can lower income taxes.
• D)Leasing transfers the title to the lessee at the beginning of the lease.

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Definitions:

Net Income

The total profit or loss of a business after all expenses, including taxes and interest, have been deducted from revenue.

Financial Statements

Reports that provide an overview of a business's financial condition, including income statement, balance sheet, and cash flow statement.

Financial Statements

Reports that summarize the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement, among others.