Asked by
Jennifer Cortez
on Nov 02, 2024
Verified
Which of the following is not one of the steps in the classification process of a finance lease?
A) Analyse the lease to determine what risks and rewards are transferred from the lessor to the lessee.
B) Identify the potential risks and rewards associated with the ownership of the asset.
C) Assess whether the risks and rewards have been substantially passed to the lessee.
D) Determine what risks and rewards stay with the owner of the asset.
Finance Lease Classification
The categorization of a lease as a finance lease, indicating that substantially all risks and rewards of ownership are transferred to the lessee.
- Comprehend the categorization and financial recording of finance leases as opposed to operating leases.
Verified Answer
EA
Learning Objectives
- Comprehend the categorization and financial recording of finance leases as opposed to operating leases.