A lease that is cancelable by the lessee, is a relatively short-term, and does not transfer rights or risks to the lessee is called a(an)

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An operating lease is characterized by its short-term nature, the option for the lessee to cancel, and the fact that it does not transfer the substantial risks and rewards of ownership to the lessee. This contrasts with a capital lease, where the lessee essentially gets the benefits and risks akin to ownership.

A Lease That Is Cancelable by the Lessee, Is a Relatively