Which of the following lease treatments interprets the lease contract as an operating lease?

Question

Quizplus · Accepted Answer

A rental agreement is a common way to interpret a lease contract as an operating lease, where the lessee has the right to use the asset but does not have ownership or control of it. A rental agreement typically includes regular payments that cover the use of the asset for a specific period of time. This is different from a loan equivalent or a sale equivalent, where the lessee has greater control or even ownership of the asset, and from a purchase, where the lessee acquires ownership of the asset outright.

Which of the Following Lease Treatments Interprets the Lease Contract