ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    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?
    A Uncertain Items Correct Answer Incorrect Answer
    B On-Balance Sheet Items Correct Answer Incorrect Answer
    C Off-Balance Sheet Items Correct Answer Incorrect Answer
    D Open-to-Exposure Items Correct Answer Incorrect Answer
    E Eventuality items Correct Answer Incorrect Answer

    Solution

    ┬╖┬а┬а┬а┬а┬а┬а┬а┬а Off-Balance Sheet Items are those items in the books of a bank, which are not mentioned in the balance sheet of the bank. ┬╖┬а┬а┬а┬а┬а┬а┬а┬а 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.

    Practice Next
    More Section test Accounts Questions

    Relevant for Exams:

    ask-question