Purchase options are provisions frequently included in both operating and financial leases that allow the lessee to purchase the leased asset at maturity.

Question

Quizplus · Accepted Answer

This is true. Purchase options give the lessee the right (but not the obligation) to purchase the leased asset at the end of the lease term. This can be a desirable feature of a lease for the lessee, as it may provide the opportunity to acquire the asset at a favorable price or to continue using the asset beyond the original lease term.

Purchase Options Are Provisions Frequently Included in Both Operating and Financial