- 1 Marks
BMF – Nov 2023 – L1 – SA – Q7 – Basics of Business Finance and Financial Markets
Identify the correct feature of a finance lease.
Question
Which of the following is TRUE of a finance lease?
A. The leased asset is reported in the statement of financial position of the lessor as a non-current asset
B. The lessor is responsible for insurance running and maintenance costs for the asset
C. The purchase cost of the leased asset is paid by the lessor
D. The lessee cannot claim the tax depreciation allowances
E. The lessee is the legal owner of the asset
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