The operating lease method is appropriate when the lessor enjoys most of the _____ and bears most of the _____ of ownership.
A)risks; rewards
B)rewards; risks
C)cash receipts; cash disbursements
D)cash disbursements; cash receipts
E)cash receipts; risks

Question

Quizplus · Accepted Answer

In an operating lease, the lessor retains most of the rewards and risks associated with ownership, while the lessee uses the asset temporarily.

The Operating Lease Method Is Appropriate When the Lessor Enjoys