Multiple Choice
Which of the following is a difference between acquiring an asset with a capital lease or using debt to purchase the asset?
A) The lease does not appear as a liability on the balance sheet.
B) The lessee can depreciate the asset over the length of the lease rather than over its useful life.
C) The lessee does not retain the salvage value of the asset.
D) The lessee is not responsible for repairs, maintenance and insurance on the asset.
Correct Answer:
Verified
Correct Answer:
Verified
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