Which of the Following Statements Regarding Leases Is CORRECT

question 120

Multiple Choice

Which of the following statements regarding leases is CORRECT?

• A)Capital leases are favored over operating leases.
• B)A debit balance in the Leased Asset account on the balance sheet indicates an operating lease.
• C)Title is transferred to the lessee at the end of an operating lease term.
• D)Operating leases require the lessee to make rent payments.

---

Definitions:

Competitors

Other businesses or entities that offer similar products or services within the same market and vie for the same customer base.

Loyalty Rates

Refers to the metric that measures the level of loyalty of customers to a brand or product, often calculated through repeat purchases or engagement.

Benefits-sought

Specific advantages or improvements customers are looking for in a product or service, which influence their purchasing decisions.

Service Support

Assistance and resources provided by a company to the users of its products or services.