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operating lease - 3 dictionary results
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Operating Lease
A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.
Investopedia Commentary
An operating lease is not capitalized it is accounted for as a rental expense.
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See also: Capital Lease, Lease
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operating lease
- A short-term lease (such as that of a cable television connection box on a monthly basis) in which rental payments are made by the lessee and full ownership rights are kept by the lessor. An operating lease contrasts with a capital lease in which ownership of the asset effectively passes from the lessor to the lessee.
Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Copyright © 2003. Published by Houghton Mifflin.
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Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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