Only financial leases must be capitalized and disclosed on a company's financial statements.

Name: Only financial leases must be capitalized and disclosed on a company's financial statements.
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Financial leases, also known as capital leases, must be capitalized and disclosed on a company's financial statements according to accounting standards. Operating leases, on the other hand, do not require capitalization but must still be disclosed in the footnotes of financial statements.

Only Financial Leases Must Be Capitalized and Disclosed on a Company's