Which of the following might give rise to off-balance sheet financing?
I. Long-term operating leases
II. Sale of receivables without recourse
III. Through-put agreements
IV. Purchase commitments
A) I, II, III and IV
B) I, II and IV
C) II, III and IV
D) I, III and IV

Question

Quizplus · Accepted Answer

Long-term operating leases, sale of receivables without recourse, and through-put agreements are all examples of off-balance sheet financing. Purchase commitments are not.

Which of the Following Might Give Rise to Off-Balance Sheet