While Only Certain Leases Are Currently Accounted for as a Sale

While only certain leases are currently accounted for as a sale or purchase,there is theoretical justification for considering all leases to be sales or purchases.The principle reason that supports this idea is that:

A) a lease reflects the purchase or sale of a quantifiable right to the use of the property.
B) during the life of the lease, the lessee can effectively treat the property as if it were owned by the lessee.
C) all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal.
D) at the end of the lease, the property usually can be purchased by the lessee.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free