Asked by Kylee Israelsen on Jun 05, 2024
Verified
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.
Verified Answer
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.
Learning Objectives
- Comprehending the fundamental concepts and terminology related to leases and their influence on financial reports.
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