Question

Question:
The classification of a lease as either a finance lease or an operating lease is based on

options:
a) the economic life of the asset.

b) the minimum lease payment being atleast 50% of the fair value

c) terms of transfer of risks and rewards of lease and leasee capacity to purchase lease property.

d) the length of the lease period.

e) terms of transfer of the risk and reward of lease property ownership.​

Answer 1

D bit is the right answer

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