Which condition would result in an operating lease?
A)Risk of breakage is with the lessee.
B)Reward of high resale value is with the lessor.
C)Risk of change in rental rates is with the lessee.
D)Reward of longer than expected useful life for the leased asset is with the lessee.

Question

Quizplus · Accepted Answer

An operating lease typically involves the lessor retaining the risks and rewards of ownership, such as the reward of high resale value. This contrasts with a finance lease, where risks and rewards are transferred to the lessee.

Which Condition Would Result in an Operating Lease