Which of the following is not a reason for leasing?
A)Leasing provides the lessor with insurance against obsolescence.
B)Leasing can reduce taxable income.
C)Leasing reduces the risk of asset ownership for lessee.
D)A company can obtain financing easier because the leasing company retains title to the asset.

Question

Quizplus · Accepted Answer

Leasing provides the lessee, not the lessor, with insurance against obsolescence. The lessor is the owner of the asset, while the lessee benefits from using the asset without the risks of ownership, including obsolescence.

Which of the Following Is Not a Reason for Leasing