A financial lease is a mutually agreed-upon commitment by a lessor and lessee under which the latter agrees to lease a specific asset over a specified period of time.

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Quizplus · Accepted Answer

A financial lease is indeed a contractual agreement between a lessor and lessee, where the lessee agrees to lease an asset for a significant portion of its useful life, effectively assuming both the risks and rewards of ownership.

A Financial Lease Is a Mutually Agreed-Upon Commitment by a Lessor