Which of the Following Statements About 'Net' Finance Leases Is

Multiple Choice

Which of the following statements about 'net' finance leases is incorrect?

A) The lessor will be responsible for the periodic maintenance of the asset.
B) At the end of the lease period, the company will be required to make a residual payment.
C) Upon payment of the residual amount, ownership of the asset transfers to the company.
D) The lessor's role is one of financing, while the lessee makes regular rental payments.