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Published on Apr 30, 2012
Register for free CFA course: http://www.edupristine.com/ca/free-10... Learn how the cash flow from operations is higher under capital lease than operating lease. Capital Lease: A lease considered to have the economic characteristics of asset ownership. A capital lease would be considered a purchased asset for accounting purposes. Operating Lease: An operating lease is a lease whose term is short compared to the useful life of the asset or piece of equipment being leased.
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