Vidyalelo
Commerce · Q976

Financial Management

Graduate and Post Graduate · Commerce · question 976

Q976

Type of financial security in which firms do not borrow money rather lease their assets is classified as

A.
leases
Answer
B.
preferred stocks
C.
common stocks
D.
corporate stocks

Answer: Option A

Solution

Answer: Option A
Solution:
Type of financial security in which firms do not borrow money rather lease their assets is classified as leases. A lease is a contract outlining the terms under which one party agrees to rent property owned by another party.