Which of the following statements concerning leasing is true?
A)Leasing is an "off-the-balance-sheet" method of financing assets.
B)Although total lease payments for an asset are greater than those on a conventional loan, most leases do not require large capital outlays as down payments.
C)Leasing gives business owners access to equipment even when they cannot borrow the money to buy it.
D)All of the above

Question

Quizplus · Accepted Answer

All three statements are true. Leasing is often considered an "off-the-balance-sheet" financing method because the asset being leased is not recorded as an asset or liability on the lessee's balance sheet. In many cases, leasing allows businesses to use equipment without a large upfront capital outlay. And finally, leasing provides access to equipment that may not be possible to purchase due to financing constraints.

Which of the Following Statements Concerning Leasing Is True