If a ﬁrm wishes to keep a lease off of its balance sheet, it needs to use a(n):

Name: If a ﬁrm wishes to keep a lease off of its balance sheet, it needs to use a(n):
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Operating leases are typically used when a firm wishes to keep a lease off of its balance sheet. With an operating lease, the leased asset is not recorded on the lessee's balance sheet, and the lease payments are treated as operating expenses. This allows a firm to free up capital and avoid showing debt on its balance sheet.

If a ﬁRm Wishes to Keep a Lease Off of Its