Which of the following would not be a characteristic of a ﬁnancial lease?
A)They are not usually fully amortized.
B)They usually require the lessor to maintain and insure the leased assets.
C)They usually do not include a cancellation option.
D)The lessee usually has the right to renew the lease at expiration.
E)All of the above are characteristics of ﬁnancial leases.

Question

Quizplus · Accepted Answer

Financial leases are typically fully amortized, meaning the lease payments cover the entire cost of the asset over the lease term.

Which of the Following Would Not Be a Characteristic of a ﬁNancial