The managements of public companies are not legally required to disclose any off-balance sheet transactions.

Question

Quizplus · Accepted Answer

The managements of public companies are legally required to disclose any off-balance sheet transactions that may have a material impact on their finances or operations. This requirement is mandated by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) to ensure transparency and accountability in financial reporting. Failure to disclose such transactions can result in legal and financial consequences for the company and its executives.

The Managements of Public Companies Are Not Legally Required to Disclose