Under the lease agreement, the lessee gets the right to _________.

Share profits earned by the lessor

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Participate in the management of the organisation

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Use the asset for a specified period

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Sell the assets

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Solution

The correct option is D Use the asset for a specified period
A lease refers to a contractual agreement whereby the owner of the asset grants the lessee the right to use the asset for a specified period of time in return of a periodic payment. It can be simplified as an agreement between a landlord and a tenant.

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Similar questions

Under the lease agreement, the lessee gets the right to

(a) Share profits earned by the lessor

(b) Participate in the management of the organisation

(d) Sell the assets

Q. Lease financing enables the lessee to acquire the asset with a ________ investment.

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

A lease is a ____ agreement whereby one party, i.e. the owner of the asset, grants the other party the right to use the asset in return for a periodic payment.

Q. Lease rentals paid by the lessee are deductible for computing taxable profits.

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