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Many Companies Believe That Off-Balance-Sheet Financing

Question 50

Multiple Choice

Many companies believe that off-balance-sheet financing


A) is attempting to conceal the debt from shareholders by having no information about the debt included in the balance sheet.
B) wishes to confine all information related to the debt to the income statement and the statement of cash flows.
C) can enhance the quality of its financial position and perhaps permit credit to be obtained more readily and at less cost.
D) is in violation of IFRS.

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