Examlex

Solved

Off-Balance Sheet Financing Occurs When a Company Makes Use of Assets

question 93

True/False

Off-balance sheet financing occurs when a company makes use of assets but does not record the asset or corresponding liability on the financial statements.


Definitions:

Common Stock Account

An equity item on the balance sheet representing funds raised by issuing common shares.

Current Market Price

The price at which an asset or security is traded in the market at the present moment.

Current Liabilities

Obligations or debts of a company that need to be settled with creditors within a twelve-month period.

Twelve Months

A period of one year, often used in financial statements to provide a snapshot of a company's performance.

Related Questions