Asked by Kylee Israelsen on Jun 05, 2024

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An advantage of lease financing is the lack of an immediate large cash payment for the leased asset.

Lease Financing

A method of funding for acquiring assets, where the item is leased rather than purchased outright, often with an option to buy at the end.

Cash Payment

A transaction in which the payment for goods or services is made in cash at the time of purchase.

  • Comprehending the fundamental concepts and terminology related to leases and their influence on financial reports.
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JB
Jeremiah BergoniaJun 11, 2024
Final Answer :
True
Explanation :
Lease financing allows businesses to acquire assets without having to make a large upfront payment, which can be advantageous for cash flow management. The business simply makes periodic lease payments, which are typically smaller than the cost of purchasing the asset outright.