A lease that provides maintenance in addition to financing and is also usually cancelable is called a(n):
A)capital lease
B)operating lease
C)asset lease
D)equity lease

Question

Quizplus · Accepted Answer

An operating lease is a type of lease that provides maintenance in addition to financing and is also usually cancelable. A capital lease is similar to a loan and is non-cancelable, while an asset lease is a general term used to describe any type of lease that involves the use of an asset. An equity lease is a type of lease that involves ownership in the asset being leased. Therefore, option B is the best choice.

A Lease That Provides Maintenance in Addition to Financing and Is