Which of the following would not be a characteristic of a financial lease?
A) They are usually fully amortized.
B) They usually require the lessor to maintain and insure the leased assets.
C) They usually do not include a cancellation option.
D) The lessee usually has the right to renew the lease at expiration.

Question

Quizplus · Accepted Answer

Financial leases typically place the responsibility for maintenance and insurance on the lessee, not the lessor. This differentiates them from operating leases, where the lessor might maintain and insure the assets.

Which of the Following Would Not Be a Characteristic of a Financial