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

Question

Quizplus · Accepted Answer

The first sentence is describing capital leases, while the second sentence is simply repeating it with the wrong label of "operating leases".

Operating Leases Occur When the Lessee Essentially Buys an Asset