Off-balance-sheet items are
A)items omitted from the short form balance sheet.
B)contingent assets and liabilities.
C)risk-free assets and liabilities.
D)exceptionally risky assets and liabilities.
E)foreign (off shore) assets and liabilities.

Question

Quizplus · Accepted Answer

Off-balance-sheet items refer to contingent assets and liabilities that are not included in the traditional balance sheet of a company. These items may include things like off-balance-sheet financing, operating leases, and contingent liabilities like pending lawsuits or guarantees. While these items may not show up on the balance sheet, they can still have a significant impact on a company's financial health and are important to consider when analyzing a company's overall financial position.

Off-Balance-Sheet Items Are