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Off balance sheet activities are those activities which do not show any impact on balance sheet like operating lease in which company uses the assets but not shown in balance sheet.
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Why inflation may restrict the usefulness of the balance sheet as normally presented Examples?
Most of the values are based on historical or original price. The balance sheet does not account for inflation, therefore the numbers will be incorrect when it comes to the actual price of inventory.
What are the Positives and Negatives about Leasing Buying and Renting?
Some leases are operating leases. You may hear them called off-balance sheet financing It means that you don't have to show any debt amount for it So, if you have bank covenants that say that your debt has to be X% of equity, it does help Also, it spreads a cash flow out. Some people would say that it lessens risk, as we can turn back the equipment at the end of term (notice I said some people, I did not say me. This one can be argued either way) Negatives Interest rate component of the lease is sometimes not competitive If the lease is considered a capital lease, it will have to appear on the balance sheet Committment to pay Usually no ability to sub-lease
To earn a higher interest rate what trade off will you likely have to make?
A money market account is an account that earns a higher rate of interest when you carry a larger balance, resulting from large deposits.
What is disequilibrium?
Dysequilibrium (also spelled disequilibrium) is the state of being off-balance, or unsteady in terms of gait (walking) or postural stability. The term is often used in the medical field by audiologists, physicians, physical therapists, and occupational therapists to describe patients who have problems with keeping balance, veering or staggering while walking, or a falling problem. It can be used as a symptom descriptor, or as a condition that describes a person's balance problem.Dysequilibrium can be due to many different medical conditions. Common causes are weakness or orthopedic difficulty of the lower extremeties, weakness or "miscalibration" of the vestibular system of the inner ear (the body's natural equilibrium mechanism), and simple "dis-use" dysequilibrium, whereby a person becomes unsteady becasue they do not walk, exercise, or otherwise practice the skill of balance often enough.Disequilibrium-In economics-It is a situation where the market is not equilibrium.It could be because of excess demandor supply.
How should Wal Mart balance the needs for worker benefits low prices for consumers and high profits for shareholders?
There are quite a few ways for doing this. Off the top of my head, i would say product differentiation or maybe outsourcing of labour will ensure that the cost stays low.
Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
Difference between on balance sheet financing and off balance sheet financing?
In off-balance sheet financing assets are not shown in balance sheet while in balance sheet financing fixed assets shown in balance sheet.
Is bond a on balance sheet or off balance sheet item?
A bond is a liability that is recorded on the balance sheet as part of long term liabilities.
What are the off balance sheet financing?
Off balance sheet financing means those agreement due to which asset is used by business but no affect on balance sheet like operating lease.
What is the difference between contingent liability and off balance sheet liability?
There is no difference between Contingent Liability and Off Balance Sheet Liability.
When do leases provides off balance sheet financing?
Operating lease provide the off balance sheet financing because in that case company enjoys to use the asset but it is not shown in balance sheet which keeps the ratios in favourable conditions.
What is off balance sheet items?
Off balance sheet items means assets which is used by business but not shown in business like lease asset etc.
How does the financial crisis impact the balance sheet?
Accounting Standards regarding off-balance sheet items are going to be tigtened in the forseeable future.
Are loan commitments an off balance sheet items?
yes
What has the author Richard De Metz written?
Richard De Metz has written: 'Off balance sheet finance' -- subject(s): Business enterprises, Finance, Off balance sheet financing
Why operating lease are called off balance sheet?
Operating lease are called off-balance sheet because in operating lease asset is not transferred to balance sheet as it is not in full ownership of business so in this way company enjoys to use assets without affecting asset turnover ratios.
What is special off-balance sheet vehicle?
structured investment vehicle
