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Please do not plagiarize or use a previous posted answer!When nancial statement users analyze the...

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Finance

Please do not plagiarize or use a previous posted answer!When nancial statement users analyze the leverage of a rm, they need to be sure they have a complete picture of the companys obligations. Debt contracts provide incentives for managers to structure transactions so that debt remains off the balance sheet, and guarantees, commitments, leases, and other arrangements can represent liabilities not reected on the balance sheet. Why do prudent analysts pay special attention to these items in the notes to the nancial statements?

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