Class 12 Finance Important Chapter 14 Lease Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Important Solutions in English and select need one. AHSEC Class 12 Finance Additional Notes Download PDF. HS 2nd Year Banking Additional Solutions.
Class 12 Finance Important Chapter 14 Lease
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.
Lease
Chapter: 14
| IMPORTANT QUESTION AND ANSWER |
Short Questions and Answers:
1. What is a lease?
Ans: A lease is a contract between a lessor (owner) and a lessee (user), where the lessor allows the lessee to use an asset for an agreed period in return for rent.
2. Who are the two parties in a lease contract?
Ans: The two parties are the lessor (owner of the asset) and the lessee (user of the asset).
3. What are the two main types of leases?
Ans: The two main types are Finance Lease and Operating Lease.
4. What defines a finance lease?
Ans: A finance lease transfers substantially all risks and rewards of ownership to the lessee.
5. Is a finance lease cancellable?
Ans: No, finance leases are usually non-cancellable until the expiry date.
6. Who bears the maintenance cost in a finance lease?
Ans: The lessee bears the maintenance cost during the finance lease period.
7. What is an operating lease?
Ans: An operating lease does not transfer substantially all risks and rewards and is usually short-term and cancellable.
8. Who bears the risk of obsolescence in an operating lease?
Ans: The lessor bears the risk of obsolescence in an operating lease.
9. What is the intention of the lessee in an operating lease?
Ans: The lessee has no intention to purchase the asset in an operating lease.
10. What are the advantages of lease finance to the lessee?
Ans: Lease finance provides additional finance, maintains debt-equity ratio, allows easy instalments, avoids risk, and reduces operating cost.
Fill in the Blanks:
1. A lease is a contract between the ________ and the ________ of an asset.
Ans: Lessor, Lessee.
2. The two main types of leases are ________ lease and ________ lease.
Ans: Finance, Operating.
3. A ________ lease transfers substantially all the risks and rewards of ownership to the lessee.
Ans: Finance.
4. In a finance lease, the lease period covers nearly the entire ________ life of the asset.
Ans: Economic.
5. The lessee usually bears the ________ cost in a finance lease.
Ans: Maintenance.
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