___________lease is a contractual arrangement whereby the lessee agrees to make periodic payments to the lessor for five or fewer years for an asset's services. This type of lease may also be canceled at the option of the lessee.
A) A capital
B) A financial
C) A direct
D) An operating

Question

Quizplus · Accepted Answer

An operating lease is a lease that is typically short-term (five years or less) and cancellable at the option of the lessee. It is generally used for assets that will be used in the short-term or are expected to become technologically obsolete quickly. This type of lease is also known as a service lease or a rental agreement.

___________Lease Is a Contractual Arrangement Whereby the Lessee Agrees to Make