All of the Following Are the Disadvantages to Rental EXCEPT

question 72

Multiple Choice

All of the following are the disadvantages to rental EXCEPT:

• A)it requires that you make regular payments.
• B)the number of dollars paid in rent usually exceeds the number of dollars you would spend to own the asset.
• C)by renting capital equipment you incur ongoing costs if business conditions change.
• D)you do not have an ownership position.

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Definitions:

Compensation Contracts

Agreements specifying the terms of pay and benefits for an employee or executive, which may include salary, bonuses, stock options, and other forms of compensation.

Accounting Standards Codification

The collection and organization of the authoritative accounting and reporting standards for U.S. GAAP (Generally Accepted Accounting Principles).

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting in the United States.

FASB

The Financial Accounting Standards Board, which is responsible for establishing and improving standards of financial accounting and reporting for the private sector in the United States.