An advantage of leasing is that the lessor does not own the asset and can cancel:
A)only ﬁnancial leases.
B)only operating leases.
C)only capital leases.
D)any kind of leases anytime.
E)None of the above.

Question

Quizplus · Accepted Answer

Operating leases provide the lessor with more flexibility in terms of canceling the lease agreement at any time before the end of the lease term. This is because the lessor retains ownership of the asset and is simply renting it out to the lessee. In contrast, capital leases and financial leases involve a transfer of ownership to the lessee, making it more difficult for the lessor to cancel the agreement. Therefore, the correct answer is B) only operating leases.

An Advantage of Leasing Is That the Lessor Does Not