Which of the following will give rise to off-balance sheet financing?

I. Take-or-pay arrangements
II. Sale of receivables without recourse
III. Through-put agreements
IV. Purchase commitments

A)I, II, III, and IV
B)I, II, and IV
C)II, III, and IV
D)I, III, and IV

Question

Which of the following will give rise to off-balance sheet financing?

I. Take-or-pay arrangements
II. Sale of receivables without recourse
III. Through-put agreements
IV. Purchase commitments

A)I, II, III, and IV
B)I, II, and IV
C)II, III, and IV
D)I, III, and IV

Quizplus · Accepted Answer

Off-balance sheet financing includes arrangements like take-or-pay, sale of receivables without recourse, through-put agreements, and purchase commitments, as they do not appear directly on the balance sheet but still represent financial obligations or potential liabilities.

Which of the Following Will Give Rise to Off-Balance Sheet