Which Lease Can Be Best Defined as a Finance Lease

question 45

Multiple Choice

Which lease can be best defined as a finance lease where the lessor borrows most of the funds to acquire the asset?

• A)Finance lease.
• B)Operating lease.
• C)Cross-border lease.
• D)Leveraged lease.

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Definitions:

Sole Proprietorships

A business structure where the company is owned and run by a single individual, who is solely responsible for its debts and obligations.

Total Owner's Equity

Represents the residual interest in the assets of a company after deducting liabilities; it essentially reflects the owner's claim against the company's assets.

Poor Business Conditions

Suboptimal circumstances affecting commerce, often marked by reduced consumer spending, high unemployment, and economic downturn.

Statement of Cash Flows

It delineates how modifications in accounts on the balance sheet and income levels affect cash and near-cash items, breaking down the scrutiny into operating, investing, and financing categories.