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Liability
Financial obligations or debts that a company or an individual owes to others, which are expected to be settled in the future.
Capital Lease
A lease agreement that grants the lessee control over an asset, and is recorded as an asset on their balance sheet, essentially treating it like a purchase.
Operating Leases
Lease agreements that allow for the use of an asset but do not convey rights of ownership, typically used for short-term leasing of equipment or vehicles.
Return On Assets
A financial metric that measures how efficiently a company's management is using its assets to generate earnings.
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