Question

An off-balance-sheet asset is an item that moves onto the asset side of the balance sheet when a contingent event occurs or at the end of a financial period. True or false?

Answer 1

Answer:

True

Explanation:

Off -balance-sheet asset

Off-balance-sheet asset is an asset kept offthe balance sheet until a specified event occurs. When the contingent event occurs, the asset item or activity - moves onto the asset side of the balance sheet, or income is noticed on the income statement