Question
What among the following is the item related to off-
balance sheet exposure? A.   Deposits B.   Guarantee C.  Call OptionsSolution
Off-balance sheet items are the ones that do not appear on the balance sheet i.e. they are those assets that are not owned by the company or those liabilities that are not a direct obligation. A deposit is a balance sheet item, since it is an actual obligation to pay back to the depositor. Guarantees and call options are off-balance sheet as the obligation under them arise only under certain conditions, if at all. Other off-balance sheet items for a bank may include securitised assets, operating leases.
More Basic Accounting Concepts Questions
- Which letter-cluster will replace the question mark (?) in the following series?
NPQR, OORQ, PNSP, ____, RLUN - A series is given with one term missing. Choose the correct alternatives from the given ones that will complete the series.
57, 59, 56, 61, 54, ___ - Which letter-cluster will replace the question mark (?) in the following series?
RGV, UME, ?, AYW, DEF - Which letter and number cluster will replace the question mark (?) to complete the given series?
LT6, KU12, IW24, FZ48, ____ - Select the number from among the given options that can replace the question mark (?) in the following series.
17, 18, 22, 31, 47, ___
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