b) Differentiate between financial lease and operating lease.

Question

09 Apr 2024

Answer :

Word Count : 347

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Aspect	Financial Lease	Operating Lease
Ownership	The lessor transfers most risks and rewards of ownership to the lessee.	The lessor retains most risks and rewards of ownership.
Duration	Typically covers the majority of the asset's useful life.	Generally shorter-term, covering a fraction of the asset's useful life.