Which one of the following is a valid statement about leasing in Canada?
A)less than 5% of machinery and equipment in Canada is leased.
B)lessors prefer to keep equipment at the end of a lease in order to lease it again.
C)lessees typically purchase the asset at the end of the lease.
D)operating leases are particularly useful in the long term.

Question

Quizplus · Accepted Answer

In Canada, it is common for lessees to purchase the asset at the end of the lease rather than returning it to the lessor (option A is therefore incorrect). Lessors may prefer to retrieve the equipment after the end of a lease, but this is not a universal preference and not a characteristic of leasing in Canada (option B is incorrect). Operating leases are typically used for shorter-term, non-permanent use of an asset, so option D is also incorrect.

Which One of the Following Is a Valid Statement About