In a Lease Contract, which party provides the equipment to the lessee in exchange for rental payments?

• A. Lessor
• B. Lessee
• C. Supplier
• D. Purchaser

Answer: (A)

In a lease arrangement, the entity that owns the equipment and makes it available to the user in exchange for periodic payments is the lessor. The lessee gets the right to use the asset for a set period while ownership remains with the lessor (and, depending on the lease type, there may or may not be an option to buy later). The rental payments compensate the lessor for letting the lessee use the equipment and for the associated ownership risk. The terms supplier or purchaser describe selling or buying assets, not the party that provides them for lease, so they don’t fit this scenario.