Examlex
Hypotheses can be classified into two categories such as
Capital Lease
A lease classified as a purchase by the lessee for accounting purposes, where the lessee obtains significant ownership rights over the asset.
Operating Lease
is a rental agreement allowing a lessee to use an asset temporarily without ownership, typically with terms significantly shorter than the asset's life.
Operating Cash Flows
The cash generated from the normal operating activities of a business, reflecting its ability to generate positive cash flow to maintain and grow its operations.
GAAP
Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting in the United States.
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