Because Remmie's stuccoing business is experiencing an unusual demand for its services, Remmie has decided to lease an additional truck and pressure washer as opposed to having the business purchase them outright at this time. The lease for the pressure washer is for two months and would typically be described as an operating lease.

Question

Quizplus · Accepted Answer

An operating lease is a short-term, non-cancellable lease that is typically used for equipment or assets that have a limited useful life, like a pressure washer.

Because Remmie's Stuccoing Business Is Experiencing an Unusual Demand for Its