Operating leases

A) are reported on the balance sheet as an intangible asset.
B) are,in essence,the acquisition of an asset using debt.
C) allow companies to take advantage of various tax benefits
D) have a lease term of one year or less.

Operating Leases

Lease agreements that allow for the use of an asset but do not confer ownership rights of the asset to the lessee.

Intangible Asset

An asset without physical substance that provides economic benefit, such as patents, copyrights, trademarks, and goodwill.

Lease Term

The duration for which a lease agreement is effective, specifying the start and end dates.