Which of the following arrangements would NOT represent a possible example of "off-balance-sheet financing"?
A) non-consolidated subsidiaries
B) variable interest entities
C) operating leases
D) capital or financing leases

Question

Quizplus · Accepted Answer

Capital or financing leases are recognized on the balance sheet, reflecting both an asset and a liability, and thus do not qualify as off-balance-sheet financing. Off-balance-sheet financing is a way to keep large capital expenditures off a company's balance sheet, which can make the company appear more financially stable.

Which of the Following Arrangements Would NOT Represent a Possible