Asked by
Sahajveer Singh Sidhu
on Nov 07, 2024
Verified
If the lessee is generally responsible for the maintenance of the leased asset, then this scenario represents a characteristic of an operating lease.
Maintenance
The routine care and servicing by personnel for the purpose of maintaining equipment or facilities in satisfactory operating condition.
Operating Lease
A lease agreement that allows for the use of an asset but does not convey rights of ownership of the asset.
- Recognize the maintenance responsibilities under different types of leases.
Verified Answer
AN
Learning Objectives
- Recognize the maintenance responsibilities under different types of leases.