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.

Question

Quizplus · Accepted Answer

An operating lease is just like a rental where the lessee (the one renting the asset) does not assume any risks associated with ownership of the asset and returns it to the lessor (the owner of the asset) at the end of the lease term. A capital lease, on the other hand, transfers the risks and rewards of ownership to the lessee and is more similar to a purchase than a rental. Both options are not like a rental.

Which of the Following Leases Is Just Like a Rental