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 can be a source of off-balance-sheet financing, provided certain conditions are met.
D)a company can obtain financing easier by the leasing company retaining title to the asset.

Question

Quizplus · Accepted Answer

Leasing primarily benefits the lessee, not the lessor, in terms of insurance against obsolescence. The lessor is the owner of the asset, so the lessee avoids the risk of the asset becoming outdated.

Which of the Following Is Not a Reason for Leasing