Historically,leasing was often referred to as off-balance-sheet financing because lease payments were shown as operating expenses on a firm's income statement,and leased assets and associated liabilities did not appear on the firm's balance sheet under certain conditions.

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This is true. Historically, lease payments were treated as operating expenses, and the assets and liabilities associated with the lease did not appear on the balance sheet unless certain conditions were met. This allowed firms to keep the leased assets and associated debt off their balance sheets, making it appear as though they had less debt and were more financially stable than they actually were. However, accounting rules have changed over time, and today most leases must be recorded on a firm's balance sheet, regardless of whether they are classified as operating leases or capital leases.

Historically,leasing Was Often Referred to as Off-Balance-Sheet Financing Because Lease