Which of the Following Statements Characterizes an Operating Lease

question 66

Multiple Choice

Which of the following statements characterizes an operating lease?

• A)The lessee records depreciation and interest.
• B)The lessor records depreciation and lease revenue.
• C)The lessor transfers title at the end of the lease term.
• D)The lessee records a leased asset.

---

Definitions:

Base Year

A reference year used for comparative financial analysis, providing a benchmark for measuring changes or growth over time.

Discontinued Operations

Components of a business that have been sold or written off and are no longer part of ongoing operations.

Telescope Manufacturing

The process of designing, producing, and assembling telescopes, often involving precision engineering and specialized materials.

Operating Income

A measure of a company's profitability from its core business operations, excluding expenses and revenues from non-operating activities.