Question

Fill in the blank.
A company is just getting started and needs new equipment, but does not have a large amount of cash. Since the company business will also require frequent updating of the equipment, it is better to Answer
the equipment

Answer 1

Answer:

These are the building blocks of the basic accounting equation. ... If the business in question is a corporation, equity will be held by ... Transaction, Cash, Equipment, Common Stock. 1.

Explanation:

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Answer 2

Answer:

The correct answer to the fill in the blank is Lease the equipment.

Explanation:

Leasing the equipment-

• Equipment is expensive, and many small businesses may find it difficult to purchase everything they require all at once. Leasing equipment is a method of spreading costs over a set period of time.
• When you lease, you don't own the equipment, but you don't have to worry about it becoming obsolete.
• You pay a fixed rate over a set period of time with equipment leasing. Interest and fees are included in the payment.
• Leasing provides benefits that owning does not, such as lower monthly payments that are typically spread out over months or years rather than delivered in a lump sum.
• Many commercial equipment leases include service agreements or service add-ons, which provide business users with peace of mind and eliminate the need for in-house technicians.

Since, leasing an equipment involves less initial expense it is tax deductible and it is easier to upgrade equipment hence, it is better to buy the equipment on lease than buying it.

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