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

Q: What happens if economic engineers invest too much in assets?

A: Economic engineers always combine finance with engineering and develop various models to deal with…

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 effect does leasing have on a firm’s capital structure?

A: Introduction: A lease is nothing but a contract between lessor and a lessee. The lessee is entitled…

Q: What will be the Return from Owning versus Leasing explain with example?

A: Return from owning an asset: The first benefit of owning an asset is that individuals can use an…

Q: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: What is the importance of asset based valuation in a business? Include subtopics like book value…

A: Asset based Valuation method is a financial technique used to evaluate the valuation of business in…

Q: Which of the following is NOT an asset? Freehold premises Loan to Mamu Bank overdraft Machinery

A: Assets are the things which are owned by the person or company to get the benefits in the current…

Q: Do you think a company like Target would have significant research anddevelopment costs or…

A:

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: explain motivations for leasing assets instead of purchasing them;

A: Introduction: Leasing is a mechanism by which the company may receive some capital assets for use,…

Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…

A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

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: How should a prospective buyer examine the assets of a company? Explai

A: Answer: Assets of the company is examined such that to identify the financial position of the…

Q: When must a company recognize an asset retirementobligation?

A:

Q: What are the reasons why buyer would prefer to purchase asset rather than stock

A: In an asset purchase, the buyer agrees to purchase specific assets and liabilities. This means that…

Q: How is the asset based valuation important in the business?

A: In case of mergers and acquisitions:: In the event that two companies are merging, or if a company…

Q: A company should immediately recognize: A) any gain when it constructs a piece of equipment at a…

A: Matching principle: According to this principle, the expense should be recognized when it is…

Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…

A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…

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

A:

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: What effect does leasing have on a firm’s balance sheet?

A: Introduction: Leasing is nothing but a mechanism by which the company can receive some capital…

Q: Which of the following are reasons why a company is involved in leasing to other companies? I.…

A: Solution: Following are the reason due to which company is involved in leasing to other companies:…

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: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

Q: What are the advantages and disadvantages of financing assets through loans

A: Resource account is that the act of utilizing Associate in Nursing organization's financial record…

Q: How long does an asset remain the most useful to the company? What do statutes and accounting rules…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: How does a firm value an asset?

A: Assets means resources of the business that the business owns. It may be tangible assets or…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Why is it needed to reclassify financial asset when changing business model?

A: The question is related IFRS-9 "Financial Instruments". As per IFRS 9, reclassification is allowed…

Q: why service industry not involved tangible assets and retail industry involved tangible assets?

A: Assets can be divided into tangible and intangible assets. Assets which have physical existence and…

Q: What are the major types of divestitures? Whatmotivates firms to divest assets?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: What negative consequences result when fixed asset records include assets that the firm no longer…

A: Assets that were purchased for long-term use in the organization is called fixed assets, they also…

Q: Can depreciation be a profit management tool for the enterprise? Please explain with reason.

A: Definition: Depreciation:  Depreciation means fall in the value of an asset, its a process of…

Q: When a company sells an asset and simultaneously leases it back, what criteria must be met to apply…

A: Sale-Leaseback approach:   In the sale-leaseback approach, the owner of the leased asset sells it…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O…

A: Property manager is the person who sees the day to day working of the real estate.The responsibility…

Q: What is the economic rationale for the sales comparison approach? What information is necessary to…

A: Sales comparison approach: It is an appraisal method of real estate in which one property is…

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 reasons that cause a firm to construct fixed assets for its own use?

A:

Q: ) How could rates of technological change affect a company’s decision about whether to buy or lease…

A: Rate of technology plays a crucial role in the decisions made by companies. If the technology is…