The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.

Question

Quizplus · Accepted Answer

The capital, or finance, lease method is based on the concept of treating leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale. This makes option A true.

The Capital, or Finance, Lease Method Treats Leases Equivalent to Installment