Dictionary
Thesaurus
Encyclopedia
Translator
Web

capital lease

 - 2 dictionary results
Financial Dictionary

Capital Lease

A lease considered to have the economic characteristic of asset ownership.

Investopedia Commentary

A capital lease is an example of accrual accounting's inclusion of economic events.

Related Links

Uncovering Hidden Debt
Operating Cash Flow: Better Than Net Income?
The Essentials Of Cash Flow
Advanced Financial Statement Analysis

See also: Accrual Accounting, Lease, Operating Lease

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Financial Dictionary

capital lease

The long-term lease of a capital asset. To the lessee, a capital lease is the same as owning the asset. Accounting rules require that the leased asset and the present value of the lease payments be recorded on the lessee's balance sheet. For the lessor, a capital lease is treated as a sale of the asset. Also called financial lease.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see capital lease on Thesaurus | Reference
FacebookTwitterFollow us: