Why Are Operating Leases Sometimes Referred to as "Off-The-Balance-Sheet Financing

question 57

Essay

Why are operating leases sometimes referred to as "off-the-balance-sheet financing".

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another.

Negotiation

The process of discussing something formally to reach an agreement or compromise between parties.

Fraudulent

Fraudulent activities involve deceit or trickery, intentionally carried out for personal gain or to cause financial or personal harm to others.

Demand Instrument

A financial document that requires payment of the amount specified on it upon demand by the holder.