An operating lease transfers title of the leased asset to the lessee at the end of the lease term.

Name: An operating lease transfers title of the leased asset to the lessee at the end of the lease term.
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An operating lease does not transfer ownership or title of the leased asset to the lessee at the end of the lease term. The ownership remains with the lessor, and the lessee typically has the option to renew the lease or return the asset at the end of the lease term.

An Operating Lease Transfers Title of the Leased Asset to the Lessee