Define Lessor.

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Study for the AAT Level 4 Drafting and Interpreting Financial Statements Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam with confidence!

Multiple Choice

Define Lessor.

Explanation:
A lessor is the owner of an asset who grants another party the right to use that asset for a defined period in exchange for payment. The ownership stays with the lessor, while the lessee simply gains the right to use the asset during the lease. This distinguishes the lessor from the entity that uses the asset (the lessee), and from someone who only arranges a sublease or acts as a guarantor.

A lessor is the owner of an asset who grants another party the right to use that asset for a defined period in exchange for payment. The ownership stays with the lessor, while the lessee simply gains the right to use the asset during the lease. This distinguishes the lessor from the entity that uses the asset (the lessee), and from someone who only arranges a sublease or acts as a guarantor.

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