A lease structured more like a rental: the lessee uses the asset for a period and may return it at the end. Accounting and tax treatment can differ from a finance lease depending on facts and structure.
For example, a company leases a fleet vehicle for 36 months and returns it at the end, upgrading to a newer model.
Why it matters: It offers lower monthly payments and keeps the asset (and liability) off the balance sheet, which can improve financial ratios.
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