One difference between a financial lease and operating lease is that：（ ）
A: there is an often a call option in a financial lease.
B: there is often an option to buy in an operating lease.
C: an operating lease is often cancellable by the lessee.
D: a financial lease is often cancellable by the lessee.
A: there is an often a call option in a financial lease.
B: there is often an option to buy in an operating lease.
C: an operating lease is often cancellable by the lessee.
D: a financial lease is often cancellable by the lessee.
举一反三
- In financial lease, the lessor is obligated to pay lease rent till the expiry of lease period. （ ）
- For short term lease, the lessee may choose not to recognize the right-of–use asset and lease liability.
- The characteristics of operating lease A: Revocability B: Fully payment-ability C: Incomplete payment-ability D: Lease property is purchased in bulk by lessor
- A firm is most likely to structure a lease as an operating lease rather than a capital lease, when it:（） A: has a high debt-to-equity ratio. B: is very profitable. C: does not have debt covenants.
- What entry is required for the lessor for an operating lease? A: Gain/loss on asset sale. B: Net investment in lease. C: Interest income. D: Depreciation expense.