Which of the following is not a salient feature of a financial lease?

CS Executive · Financial and Strategic Management · PYQS · June 2022
Which of the following is not a salient feature of a financial lease?
(A) It can be cancelled during the initial lease period
(B) The lease is more or less fully amortized during the primary lease period
(C) The lessee is responsible for maintenance, insurance and taxes
(D) The lessee generally enjoys the option of renewing the lease for future periods at substantially reduced lease rentals

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic