When leasing equipment, which statement is incorrect regarding the comparison with outright purchase?

In the context of comparing leasing equipment with outright purchasing, the statement that leasing offers certain tax advantages is often correct, making it a misleading choice in the context of what is being asked. Leasing can indeed provide tax benefits because lease payments may be deductible as business expenses on a company's tax return, depending on the lease terms and tax regulations.

On the other hand, leasing typically requires no down payment, which makes it an attractive option for businesses looking to preserve capital. It is also important to note that while leasing can often lead to lower monthly payments, the overall cost of leasing can be higher than outright purchasing in the long run due to accumulated lease payments over time. Additionally, many leases require an insurance policy to cover the leased equipment, ensuring protection against damage or loss. Each of these factors contributes to the financial implications of leasing versus purchasing equipment.