how do you recognize off balance sheet items 
it s important to read any company s balance sheets closely including all notes when seeing common obs items such as leased items or partnerships with factors that handle accounts receivables it s a good idea to look especially closely the bottom lineassets or liabilities not included on a company s balance sheet are known as off balance sheet items reasons they ll be excluded from a balance sheet include a lack of direct ownership or direct obligation while the practice is legal companies still must address these obs items in notes on their balance sheets 