Which of the Following Best Explains Why an Organization Would

Multiple Choice

Which of the following best explains why an organization would enter into a capital lease contract?

A) To increase the ability to borrow additional funds from creditors.
B) To reduce the organization's free cash flow from operations.
C) To improve the organization's free cash flow from operations.
D) To acquire the asset at the end of the lease period at a price lower than the fair market value.