A financial lease is a leasing arrangement where the lessor's role is mainly limited to financing the property, while the lessee takes on the responsibilities of maintenance, insurance, and taxes, resembling a loan in its structure.
A True Lease is a leasing arrangement in which the lessor retains the risks and rewards of ownership, distinguishing it from other lease types like Financial Lease and Synthetic Lease.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.