Long-term, non-cancelable leases whereby the owner receives payments that cover the cost of the equipment plus a return on investment in the equipment is known as a capital lease.

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A capital lease is a long-term, non-cancelable lease where the lessee makes payments that cover the cost of the equipment and provide the lessor with a return on investment.

Long-Term, Non-Cancelable Leases Whereby the Owner Receives Payments That Cover