A/An _______ lease is a short-term arrangement where the lessee agrees to make periodic payments to the lessor for the right to use the asset.This arrangement usually contains only minor or no penalties for cancellation of the lease.

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An operating lease is a short-term arrangement where the lessee makes periodic payments to the lessor for the right to use an asset without many penalties for cancellation. Financial leases are long-term arrangements where the lessee assumes almost all responsibilities of ownership, while direct leases are typically used for real estate and leveraged leases require a significant amount of borrowing.

A/An _______ Lease Is a Short-Term Arrangement Where the Lessee