An Operating Lease Has Which One of the Following Characteristics

question 10

Multiple Choice

An operating lease has which one of the following characteristics?

• A) The economic life of the asset equals the lease term.
• B) The lessee has responsibility for the maintenance and insurance.
• C) The lease payments recover the full cost of the asset.
• D) The lessee can cancel the lease prior to the expiration date.
• E) The lease term is relatively long term.

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Definitions:

Standard of Care

The degree of care and caution expected from a person or professional under specific circumstances.

Environmental Legislation

Laws and regulations enacted by government bodies to protect the environment from pollution, degradation, and other harms, often setting standards for air, water, and soil quality.

Pollution

The contamination of the natural environment by harmful substances leading to adverse effects on living beings and ecosystems.