LearningCat: Notes to Financial Statement

Leasing Commitments as Contingent Liabilities

Business cannot elude leasing. Leasing makes it easier for companies to access various resources for various purposes, i.e., office space, machines, or vehicles, without the requirement of freezing substantial amounts of capital. But leasing commitments can lead to contingent liabilities too. In cases of carelessness, this can bring a tornado of troubles for financial stability.  […]