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Figure 17.2
Using the figure above, identify the labeled structure(s) in each of the following questions.
-Identify the structure(s) indicated by Label X.
Off-Balance Sheet Financing
Financial obligations not recorded on the balance sheet of a company, used to keep debt levels low from a reporting perspective.
Financial Leverage
The use of borrowed funds in order to amplify returns from an investment.
Leasing
A financial arrangement where a firm or individual obtains the use of an asset for a specific period in exchange for payment, typically without owning the asset.
Tax Deduction
An eligible expense that can reduce an individual's or company's taxable income.
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