Which of the following types of lease only commits the lessee to a short- term contract, less than the useful life of the asset?

Question

Quizplus · Accepted Answer

An operating lease is a short-term lease agreement, typically lasting no longer than a few months or years, that allows the lessee to use an asset without committing to its ownership or long-term maintenance. It is commonly used for assets that have a short useful life and are frequently updated or replaced, such as technology equipment or vehicles. A finance lease, on the other hand, requires the lessee to assume a greater degree of responsibility for the asset, including maintenance and eventual ownership at the end of the lease term.

Which of the Following Types of Lease Only Commits the Lessee