Which One of the Following Does Not Apply to the Lessee

question 2

Multiple Choice

Which one of the following does not apply to the lessee of a sale and leaseback arrangement?

• A) May have the option to repurchase the asset at the end of the lease term
• B) Uses the asset
• C) Receives payment for the sale in the form of lease payments
• D) Forfeits ownership rights
• E) Receives cash from the sale of the asset