A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is known as a/an:
A)finance lease
B)operating lease
C)current lease
D)non- current lease

Question

Quizplus · Accepted Answer

A finance lease is characterized by the transfer of substantially all the risks and rewards incidental to ownership of an asset to the lessee. This means the lessee essentially assumes the financial responsibilities and benefits of owning the asset, even though legal ownership may not be transferred.

A Lease That Transfers Substantially All the Risks and Rewards