Question

In an operating lease, the lessee has acquired sufficient rights of ownership and control of the property to be considered its owner.

True
False

Answer 1

In an operating lease, the lessee does not acquire sufficient rights of ownership and control of the property to be considered its owner.

Step-by-step explanation:

In an operating lease, the lessee does not acquire sufficient rights of ownership and control of the property to be considered its owner. In this type of lease, the lessee only has the right to use the property for a specific period of time, usually shorter-term. The ownership and control remain with the lessor, who is the rightful owner of the property.

An example of an operating lease is when a business rents office space for a year. The lessee can use the space but does not have ownership or control over the property.