Which one of the following statements is NOT correct: a. Leasing equipment is equivalent to selling debt
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Question:
Which one of the following statements is NOT correct:
a. Leasing equipment is equivalent to selling debt and buying the equipment, and then later selling the equipment and paying off the debt.
b. Interest expense on debt used in a business is tax-deductible for the business.
c. Dividends paid on equity that funds a business is tax-deductible for the business.
d. Debt payments must be paid whereas dividend payments are at the discretion of managers.
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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