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 generally shorter than the economic life of the asset being leased. This type of lease allows the lessee to use the asset for a short period of time without taking on the risks and responsibilities of ownership, such as maintenance and repairs. At the end of the lease term, the asset is typically returned to the lessor.

Which Type of Lease Has a Term Which Is Generally