The practice of leasing, rather than buying, necessary equipment can be a source of "off-balance sheet financing."

Name: The practice of leasing, rather than buying, necessary equipment can be a source of "off-balance sheet financing."
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

Leasing allows a company to use equipment without owning it, and the lease payments are not recorded as a liability on the balance sheet. This can provide a source of off-balance sheet financing.

The Practice of Leasing, Rather Than Buying, Necessary Equipment Can