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

Question

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A finance lease is viewed as an acquisition for accounting purposes, meaning that the lessee records the leased asset as if they had purchased it and records the lease payments as payments on a loan. In contrast, an operating lease is not viewed as an acquisition and the leased asset is not recorded on the lessee's balance sheet. True tax leases and direct leases are types of operating leases, while a security interest is a type of financing for a purchase.

A Lease That Is Viewed as an Acquisition for Accounting