The classifications of a lease by the lessee are
A) Operating and finance leases.
B) Operating, sales, and finance leases.
C) Operating and leveraged leases.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The most commonly recognized classifications of leases by lessees are operating leases and finance leases. Operating leases are generally short-term leases for assets that are not essential to a company's core operations, whereas finance leases involve long-term leases for assets that are crucial to a business's operations. Sales leasing and leveraged leasing are not typically recognized classifications for leases by lessees.

The Classifications of a Lease by the Lessee Are