The following are debt in disguise except:
A) accounts payable
B) lease
C) unfounded obligations
D) all of the above are debt in disguise

Question

Quizplus · Accepted Answer

All of the options listed are examples of debt in disguise.

A) Accounts payable represents money owed by a company to its suppliers for goods or services received. While it is a common form of short-term credit, in reality, it is a form of debt.

B) Leases represent a contractual agreement between a lessor (owner of an asset) and a lessee (the user of the asset). Leasing provides access to assets without having to purchase them outright, but it comes with obligations to make payments over a specified period. As such, leases represent a type of debt, even though they are not classified as such on a company's balance sheet.

C) Unfunded obligations refer to future liabilities that an entity has committed to meeting but for which it has not set aside funds. They are often used to finance public pension schemes or healthcare commitments, and they represent a form of debt that is not disclosed on a balance sheet.

The Following Are Debt in Disguise Except