A. Off-balance-sheet debt is a liability that the company has assumed but has not recorded on the balance sheet. The future payments on an operating lease are not recorded as a liability on the balance sheet and therefore operating leases are a form of off-balance-sheet financing.

B. Debt guaranteed for another entity is not off-balance sheet financing, though it should be disclosed in the notes to the financial statements. See the correct answer for a complete explanation.

C. Amounts due in future years under capital leases are not off-balance-sheet financing because these amounts are recorded as a liability on the balance sheet of the lessee. See the correct answer for a complete explanation.

D. The current portion of long-term debt is not off-balance-sheet financing. See the correct answer for a complete explanation.