Leasing or buying – Which one would you recommend?
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Referencing Chapter 23 in your text, and using evidence in your text or from other sources for support, discuss the following in a minimum of 250-300 words: In the examples used in the chapter, there is not much monetary difference between owning versus leasing. In these circumstances, which method would you recommend? Why? Support your assertions with a minimum of one scholarly source, cited in APA format.
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Supplement:
owning versus leasing equipment Purchasing equipment means taking title to, or assuming ownership of, the item.In this case, the asset representing the equipment is recorded on the organization’s balance sheet. The purchase could take place by paying cash from the organization’s cash reserves, or the organization could finance all part of the purchase.If financing occurs, the resulting liability is also recorded on the balance sheet. Leasing Equipment When is a lease not a lease? When it is a lease-purchase, also known as a financial lease. This is very real question that affects business decisions. The financial lease is described in the next section, and it is followed by a description of the operating lease Finance equipment |
