Question 20 (2.5 points) Saved Listen Leasing reduces the upfront cash needed to use an asset. Question 20 options: Question 21 (2.5 points) Saved Listen Lease payments are often higher than installment payments. Question 21 options: Question 22 (3 points) Saved Listen Which of the following are true about leasing? Choose as many as apply. Question 22 options: Leasing offers flexibility and a lower cost when disposing of the asset Leasing might offer protection against the risk of declining asset values Leasing might offer tax advantages Leasing is only good if you are the one making money, not spending Question 23 (3 points) Saved Listen This is a provision in the lease contract that gives the lessee the option to purchase the leased property at a specified price Question 23 options: Sales lease Purchase option Additional consideration clause Right to use option Question 24 (3 points) Listen How long should the lessee amortize the leased asset for? Question 24 options: The life of the asset 5 years of vehicles; 27.5 years for real estate Leased assets do not meet the qualification standards for amortization The term of the lease Question 25 (2.5 points) Saved Listen If you go to a dealership and lease a car, you are the lessor. Question 25 options: Question 26 (2.5 points) Saved Listen Lease terms can never be changed. Question 26 options: Question 27 (3 points) Saved Listen When the amount of the lease payments depends on an index or a rate, such as the Consumer Price Index or current interest rates, it is called: Question 27 options: Variable lease payments Standard amortization schedule Variable amortization schedule Modified lease terms Question 28 (3 points) Saved Listen The ______________ of leased property is an estimate of what its commercial value will be at the end of the lease term Question 28 options: Leasing differential Title V profit Residual value Classification Question 29 (3 points) Listen You can buy an item mid-lease if you exercise which of the following? Question 29 options: Lease acquisition Termination penalty at right to buy Component payments Purchase option Question 30 (2.5 points) Saved Listen A leasehold improvement is a means of making improvement to property you do not own, but actually lease. Question 30 options: Question 31 (2.5 points) Saved Listen Leasehold improvements are never a good idea because you should not pay to improve someone else's investment, even if it will help you make money or live a better life. Question 31 options: Question 32 (2.5 points) Saved Listen When debt investments are purchased, they are recorded at cost. Question 32 options: Question 33 (3 points) Saved Listen The fair value of a fixed-rate investment moves in the _______ direction of market interest rates. Question 33 options: Same Opposite Variable Concurrent Question 34 (3 points) Listen Changes in _____________ give rise to unrealized holding gains and losses. Question 34 options: Fair value Market dynamic Fed rates Tax law.