Operating Lease
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Description
A lease contract which is in essence a rental agreement. The lessee has the use of the leased property, but the lessor retains the usual risks and rewards of ownership. The periodic lease payments are accounted for as rent expense by the lessee and as rental revenue by the lessor.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Operating Lease
Learning Material
Covered in Topic(s)
| Liabilities |