Which of the following company types is most likely to have operating leases as an off-balance-sheet liability?

Question

Quizplus · Accepted Answer

Operating leases are commonly used for companies that require large, easily transferable assets such as transportation companies, airlines, or technology companies that lease expensive equipment. These leases are advantageous because they provide flexibility and avoid tying up capital in purchasing assets. Therefore, a company that utilizes these types of assets, such as choice C, is more likely to have operating leases as an off-balance-sheet liability.

Which of the Following Company Types Is Most Likely to Have