Which statement is not true? A leveraged lease always
A)involves three parties
B)is considered to be a sales-type lease
C)is a lessor classification, not a lessee classification
D)involves nonrecourse financing

Question

Quizplus · Accepted Answer

A leveraged lease is a type of lease where the lessor borrows a significant portion of the funding needed to purchase the asset being leased, and the rental payments made by the lessee are used to pay off the debt. It typically involves three parties (the lessor, lessee, and lender), is a lessor classification, and often involves nonrecourse financing. However, it is not necessarily considered to be a sales-type lease.

Which Statement Is Not True? a Leveraged Lease Always