Examlex
Which one of the following procedures best reflects performance assessment?
Financial Lease
A financial lease is a lease agreement where the lessee assumes both the ownership risks and rewards of the leased asset, typically for its useful life.
Operating Lease
A lease agreement allowing the use of an asset without ownership, typically with lower monthly payments and shorter terms than a capital lease.
Off-Balance Sheet Financing
Financial obligations not recorded on the balance sheet of a company, used to keep debt levels low from a reporting perspective.
Financial Leverage
The use of borrowed funds in order to amplify returns from an investment.
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