Accounting for capital leases can be thought of as similar to accounting for mortgage payments.

Name: Accounting for capital leases can be thought of as similar to accounting for mortgage payments.
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With both capital leases and mortgages, the principal amount is paid off over time with interest, and the asset being leased or purchased serves as collateral for the debt. However, there are some differences in the specific accounting treatments for capital leases compared to mortgages.

Accounting for Capital Leases Can Be Thought of as Similar