There is also a positive balance sheet effect of leasing simply because the lease is considered an asset.

Question

Quizplus · Accepted Answer

Leasing typically involves payments for the use of an asset and does not result in ownership or an asset being added to the lessee's balance sheet; instead, the lease may be recognized as a liability and right-of-use asset under certain accounting standards, but it does not inherently increase the company's asset base in the way purchasing an asset would.

There Is Also a Positive Balance Sheet Effect of Leasing