Which type of lease has a term which is generally shorter than the economic life of the asset being leased?

Question

Quizplus · Accepted Answer

An operating lease has a term that is shorter than the economic life of the asset being leased. This type of lease is often used for businesses that need to use equipment or machinery for a short period of time and do not want to be responsible for maintaining the equipment or disposing of it when the lease term ends. Under an operating lease, the lessor (owner of the asset) remains responsible for maintenance, repairs, and disposal of the asset.

Which Type of Lease Has a Term Which Is Generally