Which of the Following Statements Characterizes an Operating Lease

question 57

Multiple Choice

Which of the following statements characterizes an operating lease?

• A) The lessee records depreciation and interest.
• B) The lessee records the lease obligation related to the leased asset.
• C) The lessor records depreciation and lease revenue.
• D) The lessor transfers title of the leased property to the lessee for the duration of the lease term.

---

Definitions:

Pyridine

A basic nitrogen-containing heterocyclic compound, resembling benzene but with one CH group replaced by a nitrogen atom.

Thionyl Chloride

A reactive chemical compound used widely in organic synthesis to convert carboxylic acids into acyl chlorides.

Trans-4-methylcyclohexanol

An organic compound characterized by a cyclohexane ring with a methyl group and hydroxyl group in trans configuration relative to each other.

Organic Product

A substance resulting from an organic reaction, often characterized by its carbon-based structure.