alleryStart learning →Minimum lease payments exclude
AA bargain purchase price
BFixed periodic rentals
CA lessee residual guarantee
DContingent rent and services
Answer & Solution
Correct answer: D. Contingent rent and services
The definition leaves out contingent rent, service costs and reimbursed taxes, while fixed rentals and lessee guarantees are included.
Keep practising AS 19 Leases
Browse all AS 19 Leases questions for CA Inter, or explore more Accounting topics.
Related questions
Leaving a finance lease off the lessee's balance sheet understates obligations and distortFor a lessee, the amount of a residual value guarantee is theA lessor on finance leases also discloses accumulated provision forWhich must a lessor disclose for finance leases?In a finance leaseback, the carrying amount is written down only if there isLeaseback below fair value, loss offset by cheap rentals, isAsset sold at fair value Rs 6 lakh, carrying amount Rs 8 lakh, operating leaseback. Loss rOperating leaseback above fair value: the excess is