Managers that structure financing transactions and choose accounting methods that exclude debt on the company's balance sheet are using
A)hidden reserves.
B)fraudulent methods by default.
C)performance overstatement.
D)off-balance-sheet financing.

Question

Quizplus · Accepted Answer

Managers that structure financing transactions and choose accounting methods that exclude debt on the company's balance sheet are using off-balance-sheet financing. This can be a legitimate way to manage debt and leverage, but it can also be used to disguise the true financial health of the company, leading to performance overstatement or potentially fraudulent practices.

Managers That Structure Financing Transactions and Choose Accounting Methods That