Meaning of the word "capital lease" in English
What does "capital lease" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
capital lease
US /ˈkæpɪtl liːs/
UK /ˈkæpɪtl liːs/
Noun
1.
a lease in which the lessee acquires most of the economic benefits and risks of ownership of the asset, and which is therefore treated as an asset and a liability on the lessee's balance sheet
Example:
•
The company decided to use a capital lease for the new machinery to spread out the cost over several years.
•
Under a capital lease, the lessee is responsible for maintenance and insurance.
Synonym:
Synonym:
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