Operating Lease

What Does Operating Lease Mean?
A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.

Investopedia explains Operating Lease
An operating lease is not capitalized; it is accounted for as a rental expense.

Filed Under: Real Estate

Related Terms

Capital Lease
Effective Debt
Lease
Leasehold
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Why might a bond agreement limit the amount of assets that the firm can lease? -

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