Under the lease agreement, the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organisation
(c) Use the asset for a specified period
(d) Sell the assets
The lease period in such a contract is less than the useful life of asset. Here we are talking
about ______________.
(a) Operating or Service Lease
(b) Service Lease
(c) Financial Lease
(d) None of the above
A direct lease, a sale and leaseback, and a leveraged lease are all examples of …
(a) Operating lease
(b) Financial lease
(c) Full-service leases
(d) Off-Balance Sheet methods of financing.
Which of the following is not an indication a lease is a finance lease?
(a) The lease transfers ownership of the asset to the lessee at the end of the lease
(b) The lease term is for a short part of the economic life of the asset
(c) The leased assets are specialized in nature
(d) The present value of minimum lease payment amounts to substantially all of the fair value of the asset