Question

The lessee pays a _________ periodic amount called lease rental to the lessor for the use of the asset.

• A. Fixed
• B. Fluctuating
• C. Both a and b
• D. None of the above

Answer 1

The correct option is A Fixed

Lease financing is a contractual agreement where by the owner of the assets is 'lessor' that provides the grant to the party to use the assets, who is known as 'lessee'. The lessee pays a fixed periodic amount known as the lease rent to the lessor for the use of the assets.