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Capital Lease

After a lease term expires, a company may get ownership in the underlying property if it meets a variety of criteria (although this is beyond the scope of this book).

A capital lease is reported as a liability on the balance sheet.

Related Terms:

Balance Sheet
The balance sheet, also called statement of financial position, portrays the financial position of the public ...

Treasury Stock
When a company buys its own stock back, that stock is recorded at cost and reported ...

Trading Securities
Stock or bond holdings that a company intends to sell within a short period of time ...

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