The Movement of an Off-Balance-Sheet Asset or Liability to an On-Balance-Sheet

question 61

True/False

The movement of an off-balance-sheet asset or liability to an on-balance-sheet item is dependent on the occurrence of a contingent event.

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Definitions:

Due Diligence Inquiry

A comprehensive appraisal of a business or person prior to signing a contract, especially to evaluate its assets and liabilities and assess its commercial potential.

SEC Filing

Documents that publicly traded companies are required to submit to the U.S. Securities and Exchange Commission, providing financial and other significant information.

Attorney-Client Privilege

A legal principle that protects communications between a client and their attorney from being disclosed without the client's permission.

Accountant-Client Privilege

A legal privilege that keeps confidential communications between an accountant and their client protected from disclosure without the client's consent.