Operating Leases Are Contractual Agreements Where the Lessor Owns the Asset

question 122

True/False

Operating leases are contractual agreements where the lessor owns the asset and the lessee simply uses the asset temporarily.

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Definitions:

Course of Dealing

A term defining the established behavior and interaction patterns between contracting parties over time, building a context for interpreting their agreements.

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.

Contract Voided

A legal declaration that a contract is null and void and, therefore, unenforceable as though it never existed.

Partial Inability

A condition where an individual or entity is limited in some capacity but is not completely incapacitated.