An Operating Lease Has Which of the Following Characteristics

question 54

Multiple Choice

An operating lease has which of the following characteristics?
I.lessee has responsibility for the maintenance and insurance
II.lease payments cover the full cost of the asset
III.economic life of the asset exceeds the lease term
IV.lessee can cancel the lease prior to the expiration date

• A)I and III only
• B)II and IV only
• C)I and II only
• D)III and IV only
• E)I, II, and III only

---

Definitions:

Economic Outcomes

The results or consequences of economic activities, policies, or events, impacting wealth, resource allocation, and standards of living in a society.

Empirical Evidence

Information acquired by observation or experimentation, used to validate or refute a hypothesis or theory.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, considered a major contributor to climate change.

Sea Levels

The average height of the ocean's surface between the high and low tide, used as a standard in measuring land elevation and ocean depth.