CAF-6 · Chapter 3 · Question 15 of 15
Which of the following is an indicator that a lease might be a finance lease for a lessor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The asset is specialized and can only be used by the lessee without major modification.
Explanation
One of the situations that normally leads to a finance lease classification is when the leased asset is of such a specialized nature that only the lessee can use it without major modifications.
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