A(n) ________ is a noncancellable arrangement that requires the lessee to make payments for the use of an asset over a relatively long period of time.
A) operating lease
B) financial lease
C) sale-leaseback arrangement
D) direct lease

Question

Quizplus · Accepted Answer

A financial lease is a noncancellable arrangement where the lessee is required to make payments to the lessor for the use of an asset over a relatively long period of time. In a financial lease, the lessee is responsible for maintenance costs and has the option to purchase the asset at the end of the lease term.

A(n) ________ Is a Noncancellable Arrangement That Requires the Lessee