CAPITAL LEASE Definition

Bookmark and Share

CAPITAL LEASE is a lease obligation that has to be capitalized on the balance sheet. It is characterized by: it is non-cancelable; the life of lease is less than the life of the asset(s) being leased; and, the lessor does not pay for the upkeep, maintenance, or servicing costs of the asset(s) during the lease period.

Learn new Accounting Terms

CODING, in accounting, is the assignation of the proper account code to invoices.

PITI is an acronym for Principal, Interest, Taxes and Insurance when dealing with property mortgages.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.