A cancelable contractual arrangement whereby the lessee agrees to make periodic payments to the lessor, often for 5 or fewer years, to obtain an asset's services is called a(n)

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An operating lease is a short-term lease agreement in which the lessee does not take ownership of the asset and makes periodic payments to the lessor to obtain the asset's services. The lease is cancelable and typically lasts for 5 years or fewer. This type of lease is often used for equipment or machinery that needs upgrading or replacement frequently. Financial leases, capital leases, and direct leases are long-term leases where the lessee takes ownership of the asset and has less flexibility to cancel the lease.

A Cancelable Contractual Arrangement Whereby the Lessee Agrees to Make