"Off-balance-sheet financing" refers to a situation where liabilities are recorded in the income statement instead of the statement of financial position.

Name: "Off-balance-sheet financing" refers to a situation where liabilities are recorded in the income statement instead of the statement of financial position.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

Off-balance-sheet financing refers to keeping certain liabilities or assets off the company's balance sheet to improve financial ratios, not recording them in the income statement.

"Off-Balance-Sheet Financing" Refers to a Situation Where Liabilities Are Recorded