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

Question

Quizplus · Accepted Answer

Off-balance-sheet items include contingent assets and liabilities, which are not included in the balance sheet but have the potential to impact the financial position of a company. Exceptionally risky assets and liabilities and foreign (off shore) assets and liabilities may also be off-balance-sheet items, but they are not the only types. Option A is incorrect as off-balance-sheet items may be disclosed in the notes to the financial statements, even if they are not included in the short form balance sheet.

Off-Balance-Sheet Items Are