what do you meant by financial and operating lease

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Financial lease is a long-term lease where the lessee has ownership benefits, while operating lease is a short-term lease where the lessor retains ownership.

Financial lease is a type of lease where the lessee has the benefits and risks of ownership, typically for the majority of the asset's useful life.
Operating lease is a type of lease where the lessor retains ownership of the asset and the lessee uses it for a shorter period of time.
Financial lease is usually non-cancellable and the lessee is responsible for maintenance and insurance.
Operating lease is more flexible and allows the lessee to use the asset without taking on the risks of ownership.
Examples of financial lease include equipment leases, while examples of operating lease include office space or vehicle rentals.

what do you meant by financial and operating lease

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