Examlex
What did the Food Safety Modernization Act (FSMA) do? Has it accomplished what it should have? Why or why not?
Implicit Rate
An interest rate implicit in the terms of a lease or other contract, representing the lessor's cost of capital or the lessee's incremental borrowing rate, not explicitly stated.
Leveraged Lease
A leasing arrangement in which the lessor uses borrowed funds to acquire the asset that is then leased out, allowing the lessor to benefit from tax advantages and leverage.
Operating Lease
A contract that allows for the use of an asset but does not transfer ownership of the asset to the lessee.
Capital Lease
A financial agreement where a lessee gains significant property rights, making it similar to owning the asset, for accounting purposes.
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