operating lease
Frequency: 6.05.5 per million words
A type of lease, common in accounting, where the asset is not recorded on the lessee's balance sheet.
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Examples (20)
- Many airlines prefer an operating lease for their aircraft to avoid ownership costs.
- The company decided to opt for an operating lease for its new fleet of vehicles.
- The company decided to use an operating lease for its new fleet of vehicles.
- Under an operating lease, the lessor retains ownership of the asset.
- Under an operating lease, the asset typically remains on the lessor's balance sheet.
- Many airlines utilize an operating lease model to manage their aircraft inventory.
- An operating lease offers flexibility, allowing businesses to upgrade equipment more frequently.
- An operating lease offers financial flexibility as it often doesn't appear on the balance sheet as debt.
- Accountants often distinguish between a capital lease and an operating lease for reporting purposes.
- They structured the agreement as an operating lease to avoid capital expenditure.
- The new accounting standards have impacted how some companies classify their operating lease agreements.
- Is this a finance lease or an operating lease?
- For short-term equipment needs, an operating lease can be a very cost-effective solution.
- The new accounting standards have changed how companies report operating leases.
- Our auditor suggested reclassifying certain contracts as an operating lease rather than a capital lease.
- We signed an operating lease for the office equipment last month.
- The terms of an operating lease usually include maintenance and service provisions.
- Businesses often prefer an operating lease for assets that depreciate quickly.
- Businesses can benefit from an operating lease by preserving capital and reducing technological obsolescence.
- The terms of the operating lease were favorable for our startup.