A lease that is viewed as a rental for accounting purposes is called a(n):

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An operating lease is viewed as a rental for accounting purposes. This type of lease does not transfer ownership of the leased asset to the lessee, and therefore is not recorded as an asset or liability on their financial statements. Instead, the lease payments are recorded as expenses on the lessee's income statement. Finance leases, on the other hand, are viewed as purchases for accounting purposes and are recorded as assets and liabilities on the lessee's financial statements. True tax leases and direct leases are terms that are not commonly used in accounting, and security interest refers to a legal claim to collateral that is pledged as security for a loan.

A Lease That Is Viewed as a Rental for Accounting