Some of the main features of a finance lease are

Group of answer choices

To afford the Lessee the right-of-control or the right-of-use over the identified asset and the lessee has a legal obligation to the Lessor. An asset and liability are recognised in the Statement of Financial Position (Balance Sheet). Lease payments are made progressively and the loss of the future benefit of leased asset is recognised in each leased period.

To afford the Lessee the right-of-control or the right-of-use over all assets and the Lessee has a legal obligation to the Lessor.

To afford the Lessee the right-of-control or the right-of-use over the identified asset and no legal obligation to the Lessor.

To afford the Lessee the right-of-control or the right-of-use over the identified asset and the lessee has a legal obligation to the Lessor. An asset and liability are recognised in the Statement of Financial Position (Balance Sheet). Total payment of the financial lease is paid at the maturity date.

To afford the Lessee the right-of-control or the right-of-use over the identified asset and the lessee has a legal obligation to the Lessor. An asset and liability are recognised in the Statement of Financial Position (Balance Sheet). The loss of the future benefit is not recorded in a financial lease.