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Theoretic justification for considering all leases

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Reference no: EM13157812

Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that:

A. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee.

B. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal.

C. a lease reflects the purchase or sale of a quantifiable right to the use of property.

D. at the end of the lease the property usually can be purchased by the lessee.

Reference no: EM13157812

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