All of the Following Are Operating Leases Except a

question 143

Multiple Choice

All of the following are operating leases except a

• A)monthly lease on a building that can be canceled with 90 days' notice.
• B)ten-year lease on a new building.
• C)two-year lease on a truck with an option to renew for one more year.
• D)five-year lease of a computer with an option to buy for a small amount at the end of the lease.

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Definitions:

Lease of Goods

A contractual agreement in which one party, the lessor, grants the other party, the lessee, the right to use an asset, such as equipment or vehicles, for a specified period in exchange for payment.

Statute of Frauds

A legal concept that requires certain contracts to be in writing and signed by all parties involved to be enforceable.

Oral Contract

An agreement between parties that is not written but is fully valid and enforceable if it meets certain legal criteria.

Interest in Land

Interest in land refers to legal rights over property, including ownership, use, or other financial benefits associated with real estate.