Which three of the following are benefits of operating leases?

Question

Quizplus · Accepted Answer

Operating leases have benefits such as reduced risk of obsolescence because the lessee can return the leased asset at the end of the lease term. Additionally, the initial outlay is small because the lessee does not have to pay the full cost of the leased asset upfront. Finally, tax relief is a benefit of operating leases because the lease payments may be tax deductible. However, a variable rate of finance is a feature of finance leases, not operating leases.

Which Three of the Following Are Benefits of Operating Leases