All except which of the following are attributes of operating leases?
A) The lease period normally equals the economic life of the asset.
B) Lease payments under the initial lease contract are insufficient to recover the full cost of the asset for the lessor.
C) Leases are cancelable.
D) Maintenance and insurance normally are the responsibility of lessor.

Question

Quizplus · Accepted Answer

Operating leases have lease periods that are usually shorter than the asset's economic life, so A is incorrect. B, C, and D are all attributes of operating leases.

All Except Which of the Following Are Attributes of Operating