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Accounting treatment of financial lease and operating lease.

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How does the accounting treatment of a financial lease differ from that of an operating lease?

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How does the accounting treatment of a financial lease differ from that of an operating lease?

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How does the accounting treatment of a financial lease differ from that of an operating lease?

To distinguish between the financial lease and the operating lease, I will provide this example to illustrate how each type of lease differs in regards to accounting. Here is the example:

Imagine a firm that has ...

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