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What is off-balance sheet?

Answer:

Off-Balance Sheet refers to assets and liabilities which are not reflected on the Balance Sheet. The most common would be leased equipment or property. A leased vehicle, for example, is not owned by the company - so the monthly payments are reflected as Auto Expense, but there is no vehicle included as a fixed asset, no Accumulated Depreciation and no Loan Payable.

Lease obligations are generally disclosed in notes to the financial statements.

First answer by BigMrSteve. Last edit by BigMrSteve. Contributor trust: 413 [recommend contributor ]. Question popularity: 3 [recommend question].

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