Operating Lease

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Operating Lease

An operating lease occurs when a company rents something for an extended period of time.

Some criteria a lease must meet in order to be considered an operating lease include: 1) Is the lease term less than 75% of the estimated useful life of the asset? 2) Is the present value of the lease payments less than 90% of the original cost of the asset? 3) Does the asset go back to the original owner at the end of the term?

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.

Expected or Past Undergrad Graduation Date*

When Do You Plan to Start Studying?