Provide 5 examples of "off book" financial transactions on which SOX requires you to report if...

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Accounting

Provide 5 examples of "off book" financial transactions on whichSOX requires you to report if material. Please put some explanationfor these.

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Off book transactions refers to the assets debts or financing activities that are not presented on the balance sheet of an entity Off book transactions allows an entity to borrow being without affecting calculations of measures of indebtedness such as debt to equity DE and leverage ratios low Such financing is usually used when the borrowing of additional debt may break a debt covenant The benefit of off balance sheet items is that they do not adversely affect the liquidity position of an entity Off book transactions are in contrast to loans debt and equity which do appear on the balance sheet Most commonly known examples of offbalancesheet items include See Answer

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