Which of the following is an advantage of leasing an asset for the lessee?
A) There are lower overall costs for the asset.
B) Ownership automatically passes to the lessee at the end of the lease.
C) The lessee absorbs the risk of obsolescence.
D) Some leases are not disclosed on the lessee's balance sheet.

Question

Quizplus · Accepted Answer

Some leases, particularly operating leases, may not be disclosed on the lessee's balance sheet, allowing the lessee to keep liabilities off the balance sheet and potentially improve financial ratios.

Which of the Following Is an Advantage of Leasing an Asset