Question: Explain the difference in treatment for short-term leasing (lease terms of 12 months or less) versus longer-term operating leases. Is there any difference in the

Explain the difference in treatment for short-term leasing (lease terms of 12 months or less) versus longer-term operating leases. Is there any difference in the accounting treatment of long-term operating leases and finance leases? Think about both the balance sheet and the income statement.

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