A financial lease:
A) is generally called a capital lease by accountants.
B) requires the lessor to maintain the asset.
C) is a partially amortized lease.
D) is often called a single net lease.
E) can generally be cancelled without penalty.

Question

Quizplus · Accepted Answer

A financial lease is another term for a capital lease. It is a type of lease in which the lessee obtains almost all of the benefits and risks of ownership of the leased asset. The lessor is not responsible for maintenance of the asset in a financial lease. Financial leases can be fully or partially amortized, but they cannot be canceled without penalty once the lease has started.

A Financial Lease