PRC-3 · Chapter 4 · Question 41 of 65
A logistics company acquires a fleet of trucks under an agreement where it pays monthly installments for 5 years. At the end of the 5 years, the company pays a negotiated final price and legally owns the trucks. This is a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Finance lease
Explanation
In a finance lease, the lessee effectively pays for the full value of the asset over time and usually has the option to retain ownership at the end of the lease term.
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