PRC-3 · Chapter 4 · Question 42 of 65
Instead of buying a heavy crane, a construction firm rents it for 6 months for a specific project and returns it to the owner afterward. What type of financing arrangement is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Operating lease
Explanation
An operating lease is a short-to-medium term rental agreement where the lessee uses the asset but does not intend to take ownership at the end.
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