Operating leases occur when the lessee essentially buys an asset and borrows the money through a lease to pay for the asset.

Name: Operating leases occur when the lessee essentially buys an asset and borrows the money through a lease to pay for the asset.
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Operating leases are a type of lease where the lessee does not take ownership of the asset and is essentially renting it for a period of time. The lessor still owns the asset and is responsible for maintenance and other costs associated with it.

Operating Leases Occur When the Lessee Essentially Buys an Asset