Question

determine whether the following description is true of a capital lease, an operating lease, neither or both. \a way for a company to acquire equipment for a relatively short-term period, after which the equipment returns to the owner\ 〇 capital lease 〇 operating lease 〇 her 〇 both

Explanation:

To determine the correct lease type, we analyze the definitions:

• Capital lease: Treated as a purchase (long - term, with ownership transfer or bargain - purchase option).
• Operating lease: Short - term, where the lessee uses the asset temporarily, and the asset returns to the lessor (owner) at the end of the lease term.

The description mentions a short - term acquisition with the equipment returning to the owner, which matches an operating lease.

Answer:

Operating lease (the option corresponding to "Operating lease" in the multiple - choice options)