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

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Definitions:

Temperature

An indicator of how hot or cold an object or substance is, compared to a baseline value.

Molecular Motion

The random movement of molecules in matter due to their kinetic energy; this motion increases with temperature.

Atomic Number

It is the number of protons found in the nucleus of an atom, which determines the chemical properties of an element and its place in the periodic table.

Protons

Subatomic particles found in the nucleus of an atom, with a positive electric charge and contributing to the atomic number of an element.