Off-balance sheet financing occurs when the liabilities are kept off a company's balance sheets such as in the case in a non-current operating lease.

Name: Off-balance sheet financing occurs when the liabilities are kept off a company's balance sheets such as in the case in a non-current operating lease.
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Off-balance sheet financing involves keeping certain liabilities, like non-current operating leases, off the balance sheet to improve financial ratios and appearance.

Off-Balance Sheet Financing Occurs When the Liabilities Are Kept Off