Question: What is the difference between an operating lease and a finance lease? - A finance lease is similar to a short-term rental that does not

What is the difference between an operating lease and a finance lease?

- A finance lease is similar to a short-term rental that does not need to be recorded on the balance sheet.

- An operating lease is only reported on the lessees balance sheet, not the lessors.

- A finance lease requires the lessee to simultaneously capitalize the asset and record a liability.

- An operating lease requires the lessee to simultaneously capitalize the asset and record a liability.

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