Which of the following is not a feature of Finance Lease ?

CS Executive · Financial and Strategic Management · PYQS · December 2021
Which of the following is not a feature of Finance Lease ?
(A) The lessee is responsible for maintenance, insurance and taxes
(B) The lessee usually enjoys the option for renewing the lease
(C) It is an intermediate term to a long-term non-cancellable arrangement
(D) The lease term is significantly less than the economic life of the equipment

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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