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:

Damages

Compensation claimed by or awarded to a person for injury or loss due to a breach of contract, negligence, or other unlawful act.

Property Rights

Legal rights over the use, control, and benefits of ownership for property, including real, personal, and intellectual property.

Exclusive Use

The condition or situation where access or rights to a resource or property are limited to a specific person or entity.

Legal Protection

Measures and laws in place to safeguard individuals, groups, or organizations against infringement or harm regarding their rights, property, or well-being.