In an operating lease,the lessee is not required to record the right to use the property as an asset or to record the obligation for payments as a liability.

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In an operating lease, the lessee is not required to record the right to use the property as an asset or the obligation for payments as a liability on their balance sheet. Instead, the lease payments are recorded as an expense in the income statement. This is one of the key differences between operating leases and finance leases.

In an Operating Lease,the Lessee Is Not Required to Record