Even with Lease Capitalization, the Financial Positions of Lessors and Lessees

question 82

Multiple Choice

Even with lease capitalization, the financial positions of lessors and lessees differ.Which of the following statements does not support that assertion?

• A)The asset choice is influenced by the method of financing
• B)Secured creditors are more exposed to risk in the lease than are lessees
• C)In the face of default, the lessor's exposure to loss is larger than the lessee's
• D)The lessor stands to profit from unexpectedly high salvage proceeds, while the lessee does not

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