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

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

A:

Q: Whats is the effect of increasing the asset turnover (ATO) on enterprise price-to-book value,…

A: Asset turnover ratio is The asset turnover ratio measures the value of a company's sales or…

Q: Why profit shows as liability and loss shows as asset?

A: The assets and expenses have the debit normal balance. The liabilities and revenue have credit…

Q: How can an Investment be considered a liability since the company is forced to put resources into…

A: An investment can be considered a liability for a company when the company is forced to put…

Q: Complete the following, using exact interest. (Use Days in a year table.) (Do not round intermediate…

A: Formula: Maturity value = Principal amount + Interest amount

Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…

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Q: How could this affect the operation of the business if the current asset takes the biggest part?

A: Assets are the resources that a corporation has or controls in order to generate income in the…

Q: When must a company recognize an asset retirementobligation?

A:

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: Is the company doing a good job of earning a return on its assets? Explain.

A: Yes, the company is doing a good job of earning a return on its assets as its ROA  (Return on…

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 is the major advantage of using a fee-only financialplanner?

A: There are different types of financial planners to help investors plan their finances. Majorly,…

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…

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: What does Capital Recovery (Ownership) Cost?

A: Capital recovery cost It is an equivalent annual amount each year an asset must earn to recover…

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: 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: Is capital maintenance-oriented towards proprietary theory or entity theory?

A: Given: The relation of capital maintenance.

Q: In current asset management, what is the float? How would paying by check allow a business to take…

A: A Float is a gap of time between the recording of the transaction and the actual fund being…

Q: What does it mean to pay to transfer a liability between market participants? What would be an e.g?…

A: Paying to transfer a liability between market participants essentially means that one party is…

Q: Which one of the following is an essential characteristic of an asset? A. The inflow of future…

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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…

Q: cost of the new asset acquired

A: Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid

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

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

Q: What are the similarities between the income, market, and asset approaches to business valuation?

A: Business valuation is the measure of the economic value of a company for the benefit of the owners.…