Cassiopeia Corporation acquired an asset in a transaction which resulted in a non-cancelable obligation to make future payments.The transaction was classified as an operating lease.What is the term for this procedure?

Question

Quizplus · Accepted Answer

This is an example of off-the-balance-sheet financing, since the future payments are not recorded as a liability on the balance sheet but rather as a rent expense in the income statement.

Cassiopeia Corporation Acquired an Asset in a Transaction Which Resulted