Who Assumes the Risk of a Leased Asset's Salvage Value

question 65

Multiple Choice

Who assumes the risk of a leased asset's salvage value?

• A) Neither the lessee nor the lessor assumes this type of risk since the salvage value is known with certainty
• B) The lessee
• C) The lessor
• D) The lessee and the lessor share the risk equally

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Definitions:

Fractions

A numerical quantity that is not a whole number, representing a part of a whole.

Mixed Numbers

Numbers made up of a whole number and a fraction, indicating a quantity that falls between two consecutive integers.

Lowest Terms

refers to the simplest form of a fraction, where the numerator and denominator are as small as possible and share no common divisors other than 1.

Fractions

Mathematical expressions representing the division of one quantity by another, indicating parts of a whole.