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:

Vehicle Reported

Vehicle Reported typically refers to the documentation or registration of vehicles with authorities or in reports, often in the context of accidents, sales, or legal requirements.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Journal Entry

A record in accounting that denotes a business transaction, including information on the accounts affected and whether they are debited or credited.

Footnotes

Additional information provided at the bottom of financial statements to provide more detail or clarify the data presented in the statements themselves.