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Operating and Financial Leases (Capital Leases)

Within an accounting context, a lease can be classified as an operating lease or a financial lease. Operating lease (service lease) refers to a short-term lease of an asset with a useful life longer...

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Financial Lease (Capital Lease)

Finance lease (also called financial lease or capital lease) refers to the lease of the asset where the useful life is closely aligned to the term of the lease. The lease term is longer than operating...

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