explain motivations for leasing assets instead of purchasing them;

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Who should authorize disposal of fixed assets?

A: Disposal of Fixed Asset: Disposal of fixed asset is a process of selling off the asset whose…

Q: Explain Leasing Commissions and Related Costs?

A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…

Q: What are the major advantages of leasing a fixed asset rather than purchasing it?

A: A lease can be defined as an arrangement between the lessor(owner of the asset) and the lessee (user…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: There are several asset pricing models used to determine an asset’s intrinsic value, the most…

A:

Q: Describe the environment related to leasing transactions.

A: Lease:

Q: Which of the following is not a factor in selecting a depreciation method? a. salvage value b.…

A: Depreciation is charged on cost of assets on annual basis for repair and maintenance costs and…

Q: ite one example of the “pros-cons” on the use of Asset-Based Valuation and briefly explain

A: Asset-based valuation seems to be a type of business valuation primarily emphasizes on the worth of…

Q: What is return on assets(roa)?

A: In general terms, ROA is similar to  Return on Investment.

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: Explain and evaluate the eff ects on financial statements and ratios of leasing assets insteadof…

A: Leasing can be defined as the contract between the lessor(owner) and the lessee(user of asset)…

Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…

A:

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Define the term net advantage to leasing (NAL).

A: NAL It is the money that an entity or an individual saves from taking an asset on lease instead of…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in…

A: A short-selling of an asset or stock means that the investor sells the borrowed securities…

Q: Describe how the value of any asset is determined.

A: An asset can be any tangible or intangible asset that can be owned by a business or individual to…

Q: Which movable assets those are not considered as leasehold improvements?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: What is the role of financial intermediaries in asset transformation? Briefly explain along with the…

A: Financial intermediaries are the entities involved in mobilizing the funds between two parties, one…

Q: Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance…

A: The basic concept of lease contract is there are mainly two parties involving in this lease…

Q: hat situational circumstances can the Asset-based valuation be

A: Valuation is the process of determining the fair market value of a company's assets or operations.…

Q: What is net advantage to leasing (NAL)?

A: Leasing refers to an agreement between two parties to use asset of one by other in exchange of some…

Q: Discuss the nature of acquiring fixed assets?

A: Fixed assets are one of the major investments of a company and this covers the huge part of the…

Q: One of the advantages of leasing rather than purchasing an asset is that leasing offers flexibility…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What are the key advantages and disadvantages of leasing?

A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…

Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What are the goals of asset & liability management (ALM)?

A: Assets are the resources owned or control by an entity to produce economic value in the coming…

Q: What is the requirement of the general description of the leasing arrangement?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: Explain how the DuPont system of analysis breaks down return on assets?

A: As per DU point analysis, ROA(retrun on asets)=(Net Income/Sales)*(Sales/Average Assets)

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: What are the advantages of using the Dupont System to analyze the Return on Assets

A: Dupont analysis is one that helps the firm to analyze the fundamental performance of the firm. It is…

Q: Distinguish between physical asset markets and financial asset markets.

A: Physical Asset markets are markets where buyers and sellers transact in tangible goods which can be…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

A:

Q: Why is it favorable to invest in different investable assets?

A: Diversification is very important in investment to achieve the consistency.

Q: Explore the implications of short-selling and the inclusion of a risk-free asse

A: Short selling may be a trading or investment strategy that bets on the worth of a stock or other…