CAPITAL LEASE Definition

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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.

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POSTULATE, in logic, is a proposition that is accepted as true in order to provide a basis for logical reasoning.

AUDIT DOCUMENTATION see WORKING PAPERS.

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