In which lease type does the lessor recover the full price of the equipment plus an interest factor during the lease period?

A capital lease is characterized by the way it reflects the ownership of the asset and the financial obligations involved in leasing. In a capital lease, the lessor effectively finances the equipment on behalf of the lessee. This arrangement allows the lessor to recover the full price of the equipment over the lease term, along with an interest component that compensates for the time value of money.

Essentially, the lessee is responsible for making periodic lease payments that cover these costs, which often leads to the lease being recorded as an asset and liability on the lessee's balance sheet. This accounting treatment is similar to that of purchasing the asset outright but reflects the financing through leasing.

In contrast, an operating lease typically does not transfer the risks and rewards of ownership to the lessee; thus, the lessor may not fully recover the investment made in the equipment. Finance leases, while similar to capital leases in some aspects, can have different accounting characteristics depending on local standards and regulations. Acquisition lease is not a commonly recognized term in lease classifications in accounting.