Class 12 Finance MCQ Chapter 14 Lease Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 14 Lease Question Answer and select need one. Class 12 Finance MCQ Chapter 14 Lease Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.
Class 12 Finance MCQ 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. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.
Lease
Chapter: 14
| MCQ |
1. Lease is a contract between:
(i) Buyer and Seller.
(ii) Owner and User.
(iii) Lender and Borrower.
(iv) Employer and Employee.
Ans: (ii) Owner and User.
2. The owner of the asset in a lease contract is called:
(i) Lessee.
(ii) Lender.
(iii) Lessor.
(iv) Broker.
Ans: (iii) Lessor.
3. Which of the following is NOT a type of lease?
(i) Finance Lease.
(ii) Operating Lease.
(iii) Capital Lease.
(iv) Insurance Lease.
Ans: (iv) Insurance Lease.
4. A finance lease is also called:
(i) Short-term lease.
(ii) Service lease.
(iii) Capital lease.
(iv) Rental contract.
Ans: (iii) Capital lease.
4. According to AS-19, a finance lease transfers:
(i) Only use rights.
(ii) Substantially all risks and rewards of ownership.
(iii) No ownership rights.
(iv) Maintenance responsibility to lessor.
Ans: (ii) Substantially all risks and rewards of ownership.
5. Who bears the maintenance cost in a finance lease?
(i) Lessor.
(ii) Lessee.
(iii) Government.
(iv) Both lessor and lessee.
Ans: (ii) Lessee.
6 Which of the following is an advantage of lease finance to the lessee?
(i) Reduction in ownership rights.
(ii) Access to assets without heavy initial investment.
(iii) Increase in debt-equity ratio.
(iv) Responsibility for asset disposal.
Ans: (ii) Access to assets without heavy initial investment.
7. In a finance lease, the lease term covers:
(i) Less than half the economic life of the asset.
(ii) The major part of the economic life of the asset.
(iii) Only 10% of the asset life.
(iv) No fixed term.
Ans: (ii) The major part of the economic life of the asset.
8. Operating lease is also known as:
(i) Long-term lease.
(ii) Service lease.
(iii) Capital lease.
(iv) Finance lease.
Ans: (ii) Service lease.
9. Which party bears the risk of obsolescence in an operating lease?
(i) Lessor.
(ii) Lessee.
(iii) Both.
(iv) Neither.
Ans: (i) Lessor.
10. Operating lease is usually:
(i) Non-cancellable.
(ii) Cancellable with notice.
(iii) Perpetual.
(iv) Unilateral.
Ans: (ii) Cancellable with notice.
11. In operating lease, the lease rentals are generally:
(i) Lower than finance lease.
(ii) Higher than finance lease.
(iii) Zero.
(iv) Same as finance lease.
Ans: (ii) Higher than finance lease.
12. Which of the following assets is suitable for a finance lease?
(i) Computers.
(ii) Heavy machinery.
(iii) Office furniture.
(iv) Small vehicles.
Ans: (ii) Heavy machinery.
13. In a finance lease, the lessee usually has:
(i) No option to purchase.
(ii) Option to purchase the asset.
(iii) Unlimited use rights.
(iv) No obligations.
Ans: (ii) Option to purchase the asset.
14. In an operating lease, the lessee usually:
(i) Has the intention to purchase the asset.
(ii) Has no intention to purchase the asset.
(iii) Owns the asset.
(iv) Bears all risks.
Ans: (ii) Has no intention to purchase the asset.
15. One advantage of lease finance to the lessor is:
(i) Transfer of risk.
(ii) Loss on repossession.
(iii) Maintenance cost burden.
(iv) Limited profitability.
Ans: (i) Transfer of risk.
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