Operating leases
A)are reported on the balance sheet as an intangible asset.
B)are,in essence,the acquisition of an asset using debt.
C)allow companies to take advantage of various tax benefits
D)have a lease term of one year or less.

Question

Quizplus · Accepted Answer

Operating leases have a lease term of one year or less. Option A is incorrect because operating leases are not reported on the balance sheet as an intangible asset. Option B is incorrect because operating leases are not considered as debt. Option C is also incorrect because it is not the main advantage of operating leases.

Operating Leases