90.7k views
17 votes
The management of Asteria Inc. is studying the financial reports and statements of the company for the current accounting period. Which

accounting head is a part of an off-balance sheet item?
A.
copyrights
В.
bank loan
C.
prepaid office rent
D.
operating lease

User Secan
by
8.0k points

2 Answers

13 votes

Answer:

Its D operating Lease

Step-by-step explanation:

User Erik Duymelinck
by
8.3k points
13 votes

Answer:

В. bank loan

Step-by-step explanation:

A balance sheet shows the total net worth of a business at the end of a financial year. It shows the assets of a business on one side and equity and liabilities on the other.

A balance shows the assets of a business and how they have been financed. On the liabilities, the balance sheet will indicate the short term and long term liabilities. A bank loan represents money obtained from the banks on credit. Bank loan will be a subheading on the liabilities side, especially if the business has loans from different banks.

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.