If the lease payments are suﬃcient to fully cover the lessor's cost of purchasing the asset, then this
scenario represents a characteristic of an operating lease.

Name: If the lease payments are suﬃcient to fully cover the lessor's cost of purchasing the asset, then this scenario represents a characteristic of an operating lease.
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Question

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In an operating lease, the lease payments typically do not cover the full cost of the asset; this is more characteristic of a finance or capital lease.

If the Lease Payments Are Suﬃcient to Fully Cover the Lessor's