An Operating Lease Is Treated Like a Purchase for Accounting

question 8

True/False

An operating lease is treated like a purchase for accounting purposes.

---

Definitions:

Collect Funds

To collect funds means to gather or accumulate money from various sources, often in the context of payments or fundraising activities.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Zero-balance Account

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an exact amount to cover checks presented.

Float Management

Strategies employed by companies to manage the time between issuing and cashing payments to optimize available cash flow.