A popular method for an entity to acquire the benefits of property, plant and equipment is to lease assets. Which of the following asset types are commonly subject to lease agreements?
I. Buildings
II. Motor vehicles
III. Storage space
IV. Equipment and Machinery

Question

Quizplus · Accepted Answer

All four asset types (buildings, motor vehicles, storage space, and equipment/machinery) are commonly subject to lease agreements. This allows entities to use the assets for a period of time while avoiding the upfront costs of purchasing, while the lessor receives regular payments and retains ownership of the asset.

A Popular Method for an Entity to Acquire the Benefits