If a company uses off-balance-sheet financing, assets have been acquired ?

A. For cash.

B. With operating leases.

C. With financing leases.

D. With a line of credit.

Accounting Auditing Financial Accounting CMA

Question added by Deleted user
Date Posted: 2015/04/10

Upvote (2) Views (3) Followers (6) Answers (3) Report Question

by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(B) is the Correct Ans.

Operating Lease.

by MOHAMMED KHATER , Financial Accountant , الرياض

ANSWER

C. With financing leases.

by Nadeem Aslam , Senior Accountant , Central Bureau Recruitment Services (Part of OTI Group)

Right answer is C. Assets is acquired by Financing Lease.

What is the distinguish between an operating lease and a capital lease?
Top Answer: An operating lease is treated like renting ... Payments are considered operational expenses and the asset ... See More

Answers (1)
In which of the following the lesee accounts for non-current assets in it's balance sheet and charges depreciation at applicable rates?
Top Answer: <p>a. Operating Lease</p> See More

Answers (2)
The primary function of the Balance Sheet is to:?
Top Answer: The correct answer is (D) because a balance sheet shows your business’s assets, liabilities and sharehold ... See More

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Where can we show cash in balance sheet which can not be utilized to purchase long term assets ?
Top Answer: <p>The cash which can't be utilized to purchase long term asset, must be shown in a head under curr ... See More

Answers (7)

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