Operating lease

Operating lease is a lease in which the risks and rewards are not transferred to the lease with the transfer of asset

Lease has no option to purchase the asset at the end.Ownership of the asset reamins wth the lessor

The lease can be cancelled anytime by the lessor

The asset is meant for a number of lesses and period of lease is usually shorter than in the finance lease

The lessor insures, maintains the asset and operators

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