Which of the following is an example of "off-balance-sheet financing"?
1) Non-consolidated subsidiary
2) Special purpose entity
3) Operating leases
A) 1
B) 2
C) 3
D) All of these are examples of "off-balance-sheet financing."

Question

Quizplus · Accepted Answer

All of these options are examples of off-balance-sheet financing. Non-consolidated subsidiaries, special purpose entities, and operating leases are methods used by companies to keep certain financial obligations or assets off their primary balance sheet, thereby affecting financial ratios and potentially reducing perceived risk or liability.

Which of the Following Is an Example of "Off-Balance-Sheet Financing