Asked by
Alain Poitevin
on Dec 08, 2024Verified
A characteristic of an operating lease is that the lessee has the right to cancel the contract before expiration.
Operating Lease
A lease agreement for the use of equipment or property for a shorter period than the asset's life expectancy, without transferring ownership rights.
Right To Cancel
A clause or provision in a transaction that allows a party to withdraw from the contract under certain conditions before it is fully executed.
- Comprehend the difference between capital (financial) leases and operating leases.
Verified Answer
BW
Learning Objectives
- Comprehend the difference between capital (financial) leases and operating leases.