In nine pages this paper discusses the popular commerce tool known as leasing and the accounting and cash flow advantages it offers along with leasing's future outlook also considered. Four sources are listed in the bibliography.
Name of Research Paper File: TS14_TElease1.rtf
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the variation in different accounting policies. However, one change appears to have occurred gradually will little attention of consideration, is the way that leasing has gown in terms of popularity
and in terms of market share. There have been many reasons for this, some of which are practical, and some of which are fincial. If we consider this rise we
also need to consider why it has occurred. When we consider the US this increase has been seen across almost every industry, form farm equipment and cars to computers
and even software (PR Newswire, 2002, Knudsen, 1997). The influencing factors have been the economic conditions, rising costs, focus on short term returns and the greater availability as well as
convenience that a lease can offer (Hendel and Lizzeri, 2002). Even in one single area of the economy; the small business sector, there is a projection of an increase
in the number of leases and the turnover and demand for leases growing the industry by 51% real growth between 1994 and 2005 (Anonymous, 1994).
To understand this we need to explain what we mean by a lease and how this differs from a purchase even where a loan is used. A
finance agreement, where a purchase is made, the goods pass from the vendor to the purchaser, and so does the title to those goods. The purchasers will then make payments
to the loan company that comprise of both interest and capital to repay the amount of money that had been borrowed. This means that the company owns the purchased good,
and owes money to a loan company. A leased is more similar to a rental agreement. The equipments is leased on long