Get premium membership and access questions with answers, video lessons as well as revision papers.

What are the differences between an 'operating lease' and a 'finance lease'?

      

What are the differences between an 'operating lease' and a 'finance lease'?

  

Answers


Martin
Operating lease and finance lease

- Operating leases are short term but finance/capital leases are long term
- Operating leases are cancel able/revocable but finance leases are not
- In operating leases maintenance and operating costs are borne by lessor (owner) but not
for finance lease.
- At end of lease period, a lessee is given an option to buy the asset under finance under
finance lease unlike under operating lease.
marto answered the question on February 11, 2019 at 11:13


Next: Identify any five services that financial intermediaries provide.
Previous: What are the determinants of the price of a bond?

View More CPA Financial Management Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions