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6) What is off balance sheet financing and what are the major ways firms can incur debt but keep it off their balance sheets?
6) What is off balance sheet financing and what are the major ways firms can incur debt but keep it off their balance sheets? Ignore the discussion of Operating Leases. The accounting for Operating Leases has changed since the text was published and we will cover the new lease accounting rules in Chapter 21. The changes in accounting eliminated a firm's ability to use operating leases as off-balance sheet financing, which was why the rules changed.
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