Examlex
Which group is incorrect?
Minimum Lease Payments
The least amount over the leasing term that the lessee is obligated to pay, and which may include a residual value guarantee, taxes, fees, and interest expense.
Lease Liability
A financial obligation recorded on the lessee's balance sheet, representing the present value of remaining lease payments.
Interest Expense
The charges an organization incurs from borrowing funds for a certain time frame.
Capital Lease
A lease agreement in which the lessee essentially buys an asset and borrows the funds through the lease, recording the asset and the liability on their balance sheet.
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