Question

Difference b/w operating and financial lease

Answer 1

financial lease is a lease in which the risk and rewards are transformed to lessee with the tranfer of the assent and
operating lease in which the risks and reward are not transferred to the lessee with the trasfer of the asset.
l hope it help ☺

Answer 2

these are the basic differences between operating and financial leases

         Operating Lease                                              Financial Lease
Ownership lies with the lessor                    Lessee has an option of transfer of                                                                        ownership after lease period
All the risks and rewards of the                  All the risks and rewards of the 
property goes to the lessor                        property goes to the lessee
Expenses are borne by the lessor             Expenses are borne by the lessee
There are no running costs to                    Expensive running costs to the
lessee                                                         lessee
Tax depreciation can be claimed by          Tax depreciation can be claimed by
lessee                                                         lessee