"Off -balance sheet financing" can help a company look better on solvency and liquidity measures.

Question

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Off-balance sheet financing allows a company to keep certain assets and liabilities off its balance sheet, which can make the company appear more solvent and liquid than it actually is. Therefore, it can help a company to look better on solvency and liquidity measures. However, it can also be a risky practice if not disclosed properly.

"Off -Balance Sheet Financing" Can Help a Company Look Better