Difference between revisions of "Financial lease"
(Created page with "Financial lease is a lease agreement that covers the entire expected life of the equipment; does not provide for maintenance service, is not cancellable, and is fully amor...") |
(→Definitions) |
||
| Line 5: | Line 5: | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Financial lease]]. Covers the entire expected life of the equipment; does not provide for maintenance service, is not cancellable, and is fully amortized. | :[[Financial lease]]. Covers the entire expected life of the equipment; does not provide for maintenance service, is not cancellable, and is fully amortized. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Financial lease]]. A lease that does not provide for maintenance services, is not cancelable, and is fully amortized over its life; also called a capital lease. | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 02:08, 2 November 2019
Financial lease is a lease agreement that covers the entire expected life of the equipment; does not provide for maintenance service, is not cancellable, and is fully amortized.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Financial lease. Covers the entire expected life of the equipment; does not provide for maintenance service, is not cancellable, and is fully amortized.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Financial lease. A lease that does not provide for maintenance services, is not cancelable, and is fully amortized over its life; also called a capital lease.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
