A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n)_____ lease.
A) leveraged
B) operating
C) finance
D) capital

Question

Quizplus · Accepted Answer

An operating lease is a long-term rental agreement where the ownership of the asset remains with the lessor and the lessee only has the right to use the asset for a limited period of time. This is different from a finance lease, where the lessee has a purchase option at the end of the lease term, and a capital lease, where the lessee takes ownership of the asset at the end of the lease term. A leveraged lease involves a third party contributing funds to purchase and lease the asset.

A Long-Term Rental in Which Ownership of the Asset Never