What is the meaning of "minimum lease payments"?
A)Payments over the lease term including executory costs.
B)Payments over the lease term excluding executory costs.
C)Payments over the lease term until the bargain purchase option is exercised.
D)Payments over the lease term until guaranteed residual value is received.

Question

Quizplus · Accepted Answer

Minimum lease payments refer to the total amount of payments to be made over the term of a lease, excluding any executory costs such as property taxes or maintenance fees. It represents the minimum amount that the lessee is obligated to pay to the lessor under the terms of the lease agreement.

What Is the Meaning of "Minimum Lease Payments