Leasing is typically a financing decision rather than a capital budgeting decision.The decision to acquire the asset is a "done deal" before the lease analysis begins.Therefore,in a lease analysis,we are concerned simply with whether to finance the asset with a lease or with a loan.

Question

Quizplus · Accepted Answer

The statement accurately describes the role of leasing in financing and the decision-making process.

Leasing Is Typically a Financing Decision Rather Than a Capital