Wuzzy,Inc.is evaluating the acquisition of a new car for deliveries.Automobile leases are

Question

Quizplus · Accepted Answer

Automobile leases for business purposes are typically considered operating leases, where the lessee (Wuzzy, Inc. in this case) does not take ownership of the car at the end of the lease term and is only renting the car for a specific period of time. Financial (capital) leases involve the lessee taking ownership of the asset at the end of the lease term and typically have a longer lease period.

Wuzzy,IncIs Evaluating the Acquisition of a New Car for Deliveries