Finance Lease
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Description
A lease contract that finances the eventual purchase be the lessee of leased property. The lessor accounts for a finance lease as a sale of property. The lessee records an asset and a liability equal to the present value of the future lease payments. Also called a capital lease.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Finance lease
Learning Material
Covered in Topic(s)
| Liabilities |