Renewal options are provisions frequently included in both operating and financial leases that allow the lessee to purchase the leased asset at maturity.

Question

Quizplus · Accepted Answer

Renewal options allow the lessee to extend the lease term for a specified period, not to purchase the leased asset. Purchase options, if included, specifically grant the right to buy the asset at maturity.

Renewal Options Are Provisions Frequently Included in Both Operating and Financial