Section 3065 - Leases
November 21, 2015
Definitions
Lease - The conveyance, by a lessor to a lessee, of the right to use a tangible asset, usually for a specified period of time in return for rent.
Operating Lease - A lease in which the lessor does not transfer substantially all the benefits and risks incident to ownership of property.
Capital Lease - A lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee.
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