Leasing is the right to use asset for an agreed period in return for

Answer Details

Leasing refers to the contractual agreement between a lessor (owner of an asset) and a lessee (user of an asset) whereby the lessor grants the lessee the right to use an asset for a specified period in exchange for a periodic payment known as rent. The lessee does not own the asset but has the right to use it during the lease period. The payment made by the lessee to the lessor is commonly referred to as rent, and the asset being leased could be anything from equipment, vehicles, real estate, or other physical assets. This arrangement allows businesses to acquire the use of assets without the upfront costs associated with purchasing the asset outright.