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Lessee's Perspective
The viewpoint of the tenant or user in a leasing agreement, focusing on their rights, obligations, and benefits.
Capital Lease
A lease classified as a financial transaction, where the lessee essentially buys an asset and borrows the money through a lease to pay for it, leading to asset and liability recognition in the balance sheet.
Operating Lease
A leasing agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.
Accounts Payable
The amount of money owed by a company to its suppliers or creditors for goods or services received.