An operating lease is one in which:
A) the lessee agrees to maintain the operating capability of the asset to a level specified by the lessor.
B) the risks and benefits of ownership reside with the lessor.
C) the lessee is required to maintain the leased asset according to an agreed maintenance schedule.
D) the risks and benefits of ownership reside with the lessor and the lessee is required to maintain the leased asset according to an agreed maintenance schedule.

Question

Quizplus · Accepted Answer

In an operating lease, the risks and benefits of ownership remain with the lessor. The lessor is responsible for maintaining the asset, and the lessee only uses it for a certain period, after which it is returned to the lessor. The lessee is not responsible for maintaining the asset beyond normal wear and tear. So, Option B is the best choice.

An Operating Lease Is One in Which