Which one of the following statements is correct concerning an operating lease?
A) The leased asset will have a significant residual value at the end of the lease term.
B) The lease will be recorded as a capital lease on the balance sheet of the lessee.
C) The lessor can terminate the lease at any time without penalty.
D) The lease term is generally equal to the economic life of the leased asset.
E) The lessee is responsible for the maintenance and insurance related to the leased asset.
Correct Answer:
Verified
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