Final answer:
Leases that are not classified as direct financing or sales-type leases are accounted for as operating leases. These leases offer benefits like low monthly payments but can have terms like mileage limits, which could lead to extra charges if exceeded. Option d.
Step-by-step explanation:
Any lease that does not qualify as a direct financing lease or a sales-type lease is classified and accounted for by the lessor as an operating lease (d). In the context of vehicle leasing, an operating lease allows for the use of a vehicle for a set period of time without the commitment of ownership.
Leasing can offer a more affordable option due to lower monthly payments compared to buying. However, it's important to consider the terms of the lease, such as mileage limits, which may incur extra charges if exceeded. For instance, going over a common 10,000-mile annual limit could result in additional fees.
Contracts for leases often contain complex language that can be difficult to understand, especially during stressful situations like a lease breakage. It is crucial for potential lessees to fully comprehend the lease agreement or seek professional advice if required.