Financial Leases

question 217

Multiple Choice

Financial leases:

• A) Are generally not cancellable without substantial penalty to the lessee.
• B) Are always cancellable at any time with no penalty to the lessee.
• C) May be cancellable but only at the option of the lessor.
• D) May be cancellable by the lessor but only with substantial penalty to the lessor.
• E) May be cancellable by either party at any time without penalty.