Which statement is true?
A) The guaranteed residual value is provided by the lessor.
B) The bargain purchase option is not a part of the minimum lease payment calculation.
C) The incremental borrowing rate is the interest rate that the lessor would have to pay on a similar lease or loan.
D) One of the risks of ownership is the risk of obsolescence.

Question

Quizplus · Accepted Answer

The risk of obsolescence is indeed one of the risks associated with ownership, as it refers to the risk that an asset may become outdated or no longer useful.

Which Statement Is True