Accountants use the term "financing" (or "capital") lease to refer to leases whose objective is to provide financing to the lessee for the eventual purchase of the leased property or to permit the lessee to use the property for most of its useful life. The significance of this characterization is that the property subject to a financing lease must be reported as an asset, and the corresponding rent obligation reported as a liability, on the lessee's balance sheet. A lease that is not a financing lease is considered an "operating" lease for accounting purposes. Assets subject to operating leases are not reflected on the lessee's balance sheet.