At the end of a(n)________,a business may exercise an option to purchase the equipment,usually for a nominal sum.
A)capital lease
B)operating lease
C)open-ended lease to return
D)None of the above

Question

Quizplus · Accepted Answer

In a capital lease, the lessee (business) has the option to purchase the equipment at the end of the lease term. This option is typically exercised for a nominal sum, as the lease payments made during the lease term are considered as payments towards the purchase of the equipment. An operating lease, on the other hand, does not provide this purchase option at the end of the lease term. An open-ended lease is a type of operating lease where the lessee can choose to continue leasing the equipment or return it.

At the End of A(n)________,a Business May Exercise an Option