Question

A lease where the intent is temporary use of the property by the lessee with continued ownership of the property by the lessor is called (a)- purchase of property. (b)- capital lease. (c)-an operating lease. (d)-off-balance sheet financing.

Answer 1

Answer: Operating lease

Explanation: In simple words, operating lease refers to the arrangement under which the owner of an asset allows the other party to use its asset for a period of time lesser than the life of the asset.

In such an arrangement the ownership of the asset remains with the owner, that is, the lessor.

Hence from the above we can conclude that the correct option is C.