Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Define capitalizing a lease
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Step 1
Lease is a contract between two parties wherein this is also a substitute for purchasing an asset. There are two types of leases one is operating lease and finance lease. During the term of the operating lease, the asset usually belongs to the lessor at the end of the lease.
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