Which of the following is not a characteristic of a true lease?
a. Government agencies recognized the lessee as the owner of the leased asset.
b. The rentals charged under leasing plans without an option to purchase approximate the rentals charged under plans with such an option.
c. The lessor retains the right to inspect the equipment during the term of the lease.
d. There is no mention of interest as a factor in rental charges.
ANSWER: A
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