Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'lease'?

A. lease that must be reflected on an organization's balance sheet as an asset and as a corresponding liability
B. lease of a motor vehicle for a fixed period of time at an agreed amount of money
C. credit agreement that allows the borrower to periodically take out money over an extended period of time rather than reapplying for a loan every time they need funds
D. credit agreement permitting the use of real estate, equipment or another asset, such as a vehicle, by the owner of that asset (the lessor) to a user (the lessee) for a specific period of time in return for payment as specified in the agreement

Answer: credit agreement permitting the use of real estate, equipment or another asset, such as a vehicle, by the owner of that asset (the lessor) to a user (the lessee) for a specific period of time in return for payment as specified in the agreement