GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Lease
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Finance Lease
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Leverage Lease
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Operating Lease
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Detailed explanation-1: -An operating lease is a lease whose term is short as compared to useful life of the asset. An operating lease is commonly used to acquire equipment on a relatively short term basis. Was this answer helpful?
Detailed explanation-2: -Capital lease is a lease agreement in which the lessor agrees to transfer the ownership rights to the lessee after the completion of the lease period. Capital or finance leases are long term and non cancellable in nature.
Detailed explanation-3: -19-2 An operating lease is usually cancelable and includes maintenance. Operating leases are, frequently, for a period significantly shorter than the economic life of the asset, so the lessor often does not recover his full investment during the period of the basic lease.