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Chapter 10. Beyond Their Means: Balance ... > Red Flag 1: If There Is Any Sign a C...

Red Flag 1: If There Is Any Sign a Company Retains Risks from Off-Balance Sheet Items

Either a company has completely severed its ties to an asset and any related liability, such as debt, or it should remain on the balance sheet. Otherwise, the balance sheet doesn’t present a true picture of a company’s risk profile.


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