An operating lease is often referred to as a:
I. service lease
II. maintenance lease
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

An operating lease is often referred to as a: 
I. service lease
II. maintenance lease
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

Operating leases can be referred to as both service leases and maintenance leases because they often include services and maintenance for the leased asset, distinguishing them from finance leases where the lessee typically assumes responsibility for these aspects.

An Operating Lease Is Often Referred to as A