Mar 20, 2014 · 9. From the lessor's standpoint, all of the following statements are true regarding leasing except that A. the lease may serve as a marketing tool and thereby increase sales B. if the residual value of the asset is not guaranteed, the lessor has transferred the risks of residual value decreases to the lessee C. for sales-type lease agreements, the lessor earns interest in …
Jun 13, 2019 · 87. Which of the following is NOT an advantage of leasing from the lessor's perspective (compared with offering a straight loan)? A. Leasing has a relatively low default risk. B. Administration costs may be lower for a lease than for a straight loan. C. The return to the lessor may be higher than for a straight loan. D. The lessor may use the funds for other …
6- Which one of the following is not an advantage of leasing fixed asset? a. Lessee has access to asset without the need to purchase the asset b. Lessor becomes the owner of the asset c. Repairs and maintenance are borne by the lessor d. Risk of loss due to obsolescence is on the lessee Lease means giving out the assets by lessor to lessee to ...
From the lessee’s viewpoint, an unguaranteed residual value is the same as no residual value in terms of computing the minimum lease payments. 16. The lessor will recover a greater net investment if the residual value is guaranteed instead of unguaranteed. 17.
Which is an advantage of leasing from a lessee's viewpoint? The asset can be acquired without having to make a substantial down payment.
Which of the following correctly states a lessee criterion for classifying a lease as a capital lease? The asset can be acquired without having to make a substantial down payment. Which is an advantage of leasing from a lessee's viewpoint?
Residual value(b) the number of production or similar units expected to be obtained from the use of the asset by the lessee. 3.11 Residual value of a leased asset is the estimated fair value of the asset at the end of the lease term.