A long-term lease that cannot be cancelled and that transfers virtually all the rewards and risks of ownership to the lessee is called:

Question

Quizplus · Accepted Answer

A long-term lease that cannot be cancelled and that transfers virtually all the rewards and risks of ownership to the lessee is a characteristic of a financial lease. Direct lease and leveraged lease do not necessarily transfer all ownership risks to the lessee while an operating lease is cancellable by either party.

A Long-Term Lease That Cannot Be Cancelled and That Transfers