Capitalized cost reductions are monies paid on the lease at its inception,including any down payment,trade-in value,or rebate.

Question

Quizplus · Accepted Answer

Capitalized cost reductions, by definition, refer to the monies paid at the beginning of the lease, which include down payment, trade-in value or rebate, and similar items that reduce the initial capitalized cost or the net cost of the lease. Therefore, the statement is true.

Capitalized Cost Reductions Are Monies Paid on the Lease at Its