The purchase of an asset using loan finance and the leasing of an asset under a finance lease will both result in ownership of the asset being transferred at the time of acquisition/beginning of lease and not when all payments have been made.

Question

Quizplus · Accepted Answer

In the purchase of an asset using loan finance, ownership is transferred at the time of acquisition, but in a finance lease, ownership is typically transferred only after all payments have been made or upon exercising a purchase option at the end of the lease term.

The Purchase of an Asset Using Loan Finance and the Leasing