Which of the Following Is a Difference Between Acquiring an Asset

question 101

Multiple Choice

Which of the following is a difference between acquiring an asset with a capital lease or using debt to purchase the asset?

• A) The lease does not appear as a liability on the balance sheet.
• B) The lessee can depreciate the asset over the length of the lease rather than over its useful life.
• C) The lessee does not retain the salvage value of the asset.
• D) The lessee is not responsible for repairs, maintenance and insurance on the asset.

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