Financial instruments that are not listed on the balance sheet of a company
A)may involve significant risks that must be disclosed in the notes to the financial statements.
B)are reported as assets if the company can determine the fair value.
C)must be reported as a liability on the balance sheet at the end of the accounting period.
D)must be reported on the income statement.

Question

Quizplus · Accepted Answer

Financial instruments that are not listed on the balance sheet of a company may involve significant risks, such as off-balance sheet financing or contingent liabilities. As per accounting standards, these risks must be disclosed in the notes to the financial statements.

Financial Instruments That Are Not Listed on the Balance Sheet