Which of the following will give rise to off-balance sheet financing? I. Take-or-pay arrangements II. Sale...

Which of the following will give rise to off-balance sheet financing?

I. Take-or-pay arrangements
II. Sale of receivables without recourse
III. Through-put agreements
IV. Purchase commitments

I, II, III, and IV

I, III, and IV

II, III, and IV

I, II, and IV

Solutions

Expert Solution

An off-balance sheet financing is one under which the company does not include a liability on its balance sheet.These include Take-or-pay arrangements, Sale of receivables without recourse, Through-put agreements, Purchase commitments

Option1 I, II, III, and IV is the correct option

ekkarill92 answered 2 years ago

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