Concerns over off-balance-sheet financing and risk gave rise to all of the following except:

Question

Quizplus · Accepted Answer

Current and long-term classifications for assets on the balance sheet do not relate to concerns over off-balance-sheet financing and risk. Instead, they classify assets based on their expected timing of use or conversion to cash. Finance leases and detailed financial statement disclosure of terms of long-term debt address concerns over off-balance-sheet financing by requiring companies to disclose their long-term lease commitments and debt obligations. Financial statement disclosure of commitments also requires companies to disclose their commitments beyond just leases and debt, such as purchase commitments or guarantees.

Concerns Over Off-Balance-Sheet Financing and Risk Gave Rise to All