Operating leases are examples of off‑the‑balance‑sheet financing.

Name: Operating leases are examples of off‑the‑balance‑sheet financing.
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Question

Operating leases are examples of off‑the‑balance‑sheet financing.​

Quizplus · Accepted Answer

Operating leases are considered off-the-balance-sheet financing because the lease obligations do not appear as liabilities on the lessee's balance sheet. Instead, lease payments are expensed as operating expenses on the income statement. This allows a company to use assets without showing the liabilities associated with their use.

Operating Leases Are Examples of Off‑the‑balance‑sheet Financing.​

Operating Leases Are Examples of Off‑the‑balance‑sheet Financing.