Which of the following is not one of the commonly discussed advantages of leasing?
A) Leasing permits 100% financing versus 60 to 80% when purchasing an asset.
B) Leasing permits rapid changes in equipment, thus reducing the risk of obsolescence.
C) Leasing improves financial ratios by increasing assets without a corresponding increase in debt.
D) Leasing permits write-off of the full cost of the asset.

Question

Quizplus · Accepted Answer

Leasing typically does not improve financial ratios by increasing assets without a corresponding increase in debt. In fact, lease obligations often must be recognized as liabilities on the balance sheet, which can affect financial ratios.

Which of the Following Is Not One of the Commonly