Operating leases often include what type of terms?

Question

Quizplus · Accepted Answer

Operating leases often include terms requiring the lessor to maintain the equipment or property being leased. This is a significant advantage for the lessee as they do not have to worry about maintenance and repairs.

The other options (B, C, and D) are not typically included in operating leases. Operating leases do not involve full amortization as it is a short-term lease. Operating leases also do not usually have high penalties if the lease is cancelled. Additionally, there are generally no restrictions on how much the property can be used in an operating lease.

Operating Leases Often Include What Type of Terms