Which of the following is a factor considered by the lessor at the commencement date regarding the possible termination of a lease?

Question

Quizplus · Accepted Answer

The lessor would consider the importance of the underlying asset to the lessee's operation because if the asset is critical to the lessee's business, they are less likely to terminate the lease early. This factor has nothing to do with fixed payments, lessor's lease revenue, or purchase options.

Which of the Following Is a Factor Considered by the Lessor