Explain the difference between a capital (finance) lease and an operating lease. Explain how each type of

Question:

Explain the difference between a capital (finance) lease and an operating lease. Explain how each type of lease is accounted for and the effect each has on the and income statement.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...