CPA Exam leases Simulation. Finance Lease Vs Operating Lease Vs Sales Type Lease.

In this video lecture, I discuss CPA exam for Leases. On the CPA exam, students are expected to know the difference between finance lease versus operating lease. ✔️Accounting students and CPA Exam candidates, check my website for additional resources: https://farhatlectures.com/ 📧Connect with me on social media: https://linktr.ee/farhatlectures #CPAEXAM #intermediateaccounting#accountingstudent What Is a finance Lease? A finance lease is a contract entitling a renter to the temporary use of an asset, and such a lease has the economic characteristics of asset ownership for accounting purposes. The finance lease requires a renter to book assets and liabilities associated with the lease if the rental contract meets specific requirements. In essence, a finance lease is considered a purchase of an asset, while an operating lease is handled as a true lease under generally accepted accounting principles (GAAP).