Finance Lease and Operating Lease
Finance Lease and Operating Lease Definition: The Finance Lease and Operating Lease are the very common form of lease agreements that an individual goes for. The lease is an agreement wherein the lessor grant rights to the lessee to use lessor’s property in exchange for certain periodic payments. Finance Lease: The Finance Lease or Capital Lease refers to the agreement wherein the lessee gets the ownership of the asset before the lease expires. Simply, the finance lease is the type of lease wherein the lessor transfers all the risks and rewards associated with the asset to the lessee before the lease agreement expires. The lease is said to be the finance lease if it satisfies the following requirements: · Onc...