Explain why off-balance-sheet-financing techniques are used by companies to keep debt off the books. In particular, how

Question:

Explain why off-balance-sheet-financing techniques are used by companies to keep debt off the books. In particular, how do the accounting rules for lease transactions create the potential for off-balance-sheet financing? If a company treats a lease as an off-balance-sheet debt, what steps should it take to ensure that the financial results present fairly financial position with respect to this transaction?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: