A long-term lease that cannot be cancelled and that transfers virtually all the rewards and risks of ownership to the lessee is called:

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A long-term lease that transfers essentially all of the ownership risks and rewards to the lessee is referred to as a finance lease. It may also be known as a capital lease or a full payout lease. The lease term is for the useful life of the property, and the lease payments are structured to cover the purchase cost of the asset plus interest over the lease term. The lessee typically has the alternative of purchasing the asset at the end of the lease term for a nominal amount.

A Long-Term Lease That Cannot Be Cancelled and That Transfers