What is operating lease?
A lease that does not transfer ownership economics. Under ASC 842 it is capitalized (ROU asset and lease liability) but reported as a single, generally straight-line lease cost with interest embedded.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.