A lease where the intent is temporary use of the property by the lessee with continued ownership of the property by the lessor is called
A) off-balance sheet financing.
B) an operating lease.
C) a finance lease.
D) a purchase of property.

Question

Quizplus · Accepted Answer

An operating lease is a lease where the intent is temporary use of the property by the lessee with continued ownership of the property by the lessor. It is typically used for assets that have a limited useful life, such as vehicles or equipment, and allows the lessee to use the asset without taking on the burden of ownership. The lessor retains ownership and is responsible for maintenance and repairs.

A Lease Where the Intent Is Temporary Use of the Property