One common characteristic of open-end leases is that
A)the length of the lease may be automatically extended by the lessee.
B)the total cost of the lease remains unknown until the end of the leasing period.
C)the monthly payments are variable and open-ended.
D)all of the above are common characteristics of open-end leases.

Question

Quizplus · Accepted Answer

Open-end leases, also known as finance leases, do not have a set total cost at the beginning of the lease term. The total cost is determined at the end of the lease based on the residual value of the leased asset. This contrasts with closed-end leases, where the lessee knows the total cost upfront.

One Common Characteristic of Open-End Leases Is That