Which of the Following Is a Disadvantage of Leasing

question 93

Multiple Choice

Which of the following is a disadvantage of leasing?

• A) It requires a considerably high initial cash outlay than building or buying.
• B) It is expensive than building or buying a property that are of the same value.
• C) Lease expenses are not deductible business expenses.
• D) Renovation options are limited in a leased property.

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Definitions:

Consolidated Information

Financial information that combines the accounting records of a parent company and its subsidiaries into one set of financial statements, as if they were a single entity.

Separate Financial Statements

Statements presented by a parent or an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost in accordance with AASB 9 / IFRS 9.

Repurchased Shares

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.