Which lease is essentially a rental agreement?

Question

Quizplus · Accepted Answer

An operating lease is essentially a rental agreement where a lessee (user of the asset) rents an asset from the lessor (owner of the asset) for a specified period, typically shorter than the useful life of the asset. The lessee does not assume the risks and rewards of ownership and usually returns the asset at the end of the lease term. Finance, cross-border, and leveraged leases are types of leases that involve more complex financial arrangements and often include aspects of ownership, such as transfer of title or assumption of residual value risk.

Which Lease Is Essentially a Rental Agreement