Which one of these statements is correct concerning the lease versus buy decision?
A) The lessor is primarily concerned with returning the asset at the end of the lease term without incurring any additional charges.
B) The lessee is primarily concerned about the use of the asset.
C) If Dell Computer became a lessor of its own computers it would be doing direct leasing.
D) A firm should always purchase an asset rather than lease it if the asset has a positive salvage value.
E) Dell Computer would be a captive finance company if it became a lessor of its own computers.
Correct Answer:
Verified
Q191: If an asset is leased, the lessee:
A)
Q192: To determine whether or not an operating
Q193: The user of an asset in a
Q194: The owner of an asset in a
Q195: The most commonly cited reason for leasing
Q195: Assume the lessor borrows to purchase an
Q196: The CRA will disallow any lease that:
A)
Q197: Assume that a firm does not have
Q198: An operating lease usually:
A) Normally has a
Q199: When a firm arranges its own financing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents