All of the following are operating leases except a
A)monthly lease on a building that can be canceled with 90 days' notice.
B)ten-year lease on a new building.
C)two-year lease on a truck with an option to renew for one more year.
D)five-year lease of a computer with an option to buy for a small amount at the end of the lease.

Question

Quizplus · Accepted Answer

A, B, and C are all examples of financing leases, where the lessee is effectively purchasing the asset over time through lease payments. D, on the other hand, has a clear option to purchase the asset for a small amount at the end of the lease term, indicating that it is an operating lease.

All of the Following Are Operating Leases Except a