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Finance vs. Operating Leases: 5 Differences

Don't understand the difference between finance and operating leases under US GAAP? 📈 Here are the 5 rules to determine if a lease qualifies as a finance lease 👇 👉 Ownership transfers to the lessee at the end of the lease. ⏳ The lease term covers 75% or more of the asset’s useful life. 🚫 The leased asset has no alternative use ...

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