Which of the following leases is just like a rental?
A)An operating lease.
B)A capital lease.
C)Both an operating and a capital lease.
D)Neither an operating lease nor a capital lease.

Question

Quizplus · Accepted Answer

An operating lease is just like a rental because it is a short-term lease agreement in which the lessee pays a rent for the use of the asset without taking ownership. On the other hand, a capital lease is a long-term lease agreement in which the lessee takes ownership of the asset at the end of the lease term. Therefore, a capital lease is more like a purchase agreement.

Which of the Following Leases Is Just Like a Rental