CIMA F2 Advanced Financial Reporting F2 Question # 25 Topic 3 Discussion

CIMA F2 Advanced Financial Reporting F2 Question # 25 Topic 3 Discussion

F2 Exam Topic 3 Question 25 Discussion:
Question #: 25
Topic #: 3

Which THREE of the following would typically indicate a finance lease?


A.

An asset with a useful life of ten years is being leased for ten years.


B.

The lessor is responsible for the annual maintenance of the asset.


C.

The lessee has the option to buy the asset at the end of the lease for $1.


D.

The lease contract for an asset includes an upgrade to the asset every two years.


E.

A leased asset has been specifically modified for the lessee's use.


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