Which of the following would arise if the lessee can have the incentive to use the asset more than the lessor would prefer?
A) Operating lease conflict
B) Capital lease conflict
C) Intensity of use conflict
D) Maintenance conflict

Question

Quizplus · Accepted Answer

Intensity of use conflict arises when the lessee has the incentive to use the asset more than the lessor would prefer. This may result in increased maintenance requirements and reduced useful life of the asset, causing conflicts between the lessee and the lessor. Operating and capital lease conflicts may arise due to other reasons such as ownership transfer and accounting treatments, and maintenance conflict may arise if the lessee fails to maintain the asset adequately.

Which of the Following Would Arise If the Lessee Can