All of the following are operating leases except a
A) monthly lease on a building that can be canceled with 60 days' notice.
B) Seven-year lease on a new building.
C) Four-year lease on a truck with an option to renew for two more years.
D) Ten-year lease of a computer with an option to buy for a small amount at the end of the lease.

Question

Quizplus · Accepted Answer

A lease with an option to buy for a small amount at the end of the lease is considered a finance lease, not an operating lease. The other options all have characteristics of an operating lease.

All of the Following Are Operating Leases Except a