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Capital Lease
A leasing arrangement in which the lessee records the leased asset as if it was a purchase, reflecting it on their balance sheet as an asset and a corresponding liability.
Lease Inception
The point in time at which a lease agreement is initiated or executed between the lessor and the lessee.
Capital Lease
A lease classified as a purchase by the lessee, allowing for the asset and liability to be recorded on the balance sheet.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life, recognizing the decrease in value over time.
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