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American_Bankers_Association

CTFA · Question #208

One advantage of a financial lease is that:

The correct answer is D. It provides a way to indirectly depreciate land. See the full explanation below for the reasoning.

Question

One advantage of a financial lease is that:

Options

  • AIt has a shorter maturity than term loans
  • BIt never appears as a liability on the balance sheet
  • CIt eliminate the needs to make periodic payments
  • DIt provides a way to indirectly depreciate land

How the community answered

(35 responses)
  • A
    9% (3)
  • B
    11% (4)
  • C
    3% (1)
  • D
    77% (27)

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