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Capital Lease
A lease treated as an acquisition of an asset and the incurrence of an obligation on the lessee's balance sheet, indicating a purchase and financing arrangement.
Lease Liability
An obligation representing the present value of future lease payments under a non-cancellable lease.
Operating Lease
A lease agreement that allows for the use of an asset but does not transfer ownership of the asset to the lessee, often with shorter terms.
Lease Asset
An asset that is subject to a lease agreement, where the lessee has the right to use the asset for the lease term.
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