Question

Which of the following best describes an item that may get converted into an asset or liability at a later date, depending on the happening of a certain event?

Q: Answer-Which of the following best describes an item that may get converted into an asset or liability at a...

Off-Balance Sheet Items are those items in the books of a bank, which are not mentioned in the balance sheet of the bank. These items are not assets or liabilities to be reported in the balance sheet as on the date of balance sheet, but may get converted into an asset or liability at a later date, depending on the happening of a certain event . These items are contingent upon certain breach of commitments and are also called contingent liabilities.