chap026+practice

chap026+practice - CHAPTER 26 Leasing I. DEFINITIONS LESSEE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 26 Leasing I. DEFINITIONS LESSEE a 1. The user of an asset in a leasing arrangement is called the . a. lessee b. lessor c. guarantor d. trustee e. manager LESSOR b 2. The owner of an asset in a leasing arrangement is called the . a. lessee b. lessor c. guarantor d. trustee e. manager OPERATING LEASE c 3. A shorter-term lease under which the lessor is responsible for insurance, taxes, and upkeep, while the lessee can cancel the lease on short notice, is called a(n) . a. open lease b. straight lease c. operating lease d. financial lease e. tax-oriented lease FINANCIAL LEASE d 4. A longer-term, fully-amortized lease under which the lessee is responsible for insurance, taxes, and upkeep, and which the lessee generally cannot cancel without penalty, is called a(n): a. Open lease. b. Straight lease. c. Operating lease. d. Financial lease. e. Tax-oriented lease. SALE AND LEASEBACK b 7. A financial lease in which the lessee sells an asset to the lessor and then leases it back is called a(n) . a. leveraged lease b. sale and leaseback c. operating lease d. tax-oriented lease e. straight lease NET ADVANTAGE TO LEASING
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
CHAPTER 26 c 8. The NPV that is calculated when deciding whether to lease an asset or to buy it is called the: a. Open interest net present value. b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

chap026+practice - CHAPTER 26 Leasing I. DEFINITIONS LESSEE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online