CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

What is a conventional rental agreement that transfers ownership rights to the lessee at the end of the rental term?

A. Capital lease
B. Operating lease
C. Direct financing lease
D. Sales-type lease
Correct Answer: A

An operating lease is a conventional rental agreement that does not transfer ownership rights to the lessee at the end of the rental term.

User Contributed Comments 3

User Comment
waynenfire Isn't a sales-type lease the same thing though from the lessors prespective, in that, it also transfers ownership rights to the lessee?
Capital But it is not a "conventional rental agreement" as specified by this question.
jpowers Direct financing lease and sale-type lease are types of capital leases from the lessor's point of view,
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