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Operating Lease
A lease agreement that does not transfer the risks and rewards of ownership, treated as a rental expense in the lessee's income statement.
Direct Financing Lease
A type of lease where the lessor records the present value of lease payments as a receivable, effectively transferring all risks and rewards of ownership.
Direct Financing Lease
A lease arrangement in which the lessor purchases an asset for the lessee and earns interest income over the lease term while the lessee uses the asset.
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