A leases a harvesting machine from B to be used during the harvesting season in Ontario,which is from the beginning of August to the end of September.In this case,the lease is best described as
A)a financing lease.
B)an operating lease.
C)a purchase or capital lease.
D)a hire-purchase agreement.
E)none of the above

Question

Quizplus · Accepted Answer

This is an operating lease as it is only for a specific period of time and does not transfer ownership of the harvesting machine to the lessee.

A Leases a Harvesting Machine from B to Be Used