Leases are usually classified as operating or capital. While the distinction is mostly irrelevant for small-ticket transactions such as leasing a car, it has important consequences in areas such ...

Unlike operating leases, which are treated as regular rental agreements under Generally Accepted Accounting Principles (GAAP), capital leases are recorded as asset purchases if certain criteria ...

One drawback that the lease terms usually aren’t very flexible, and a capital lease is expensive to get out of if you lose a big customer. With an operating lease you never own the truck and the ...

Operating leases are probably what most people refer to when they think of everyday leasing transaction. By contrast, capital or finance leases are ones where risk and rewards pass onto the lessee.