Multiple choice

In the balance sheet of a bank, the off-balance sheet items are shown as

  1. asset

  2. liability

  3. asset or liability as per its nature

  4. footnotes to the balance sheet
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Off balance sheet (OBS) items refer to assets or liabilities that do not appear on a company's balance sheet but are nonetheless effectively assets or liabilities of the company. Footnotes to the financial statements refer to additional information provided in a company's financial statements. Footnotes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement.

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