Which of the Following Statements Is Correct with Respect to Set-Off

question 37

Multiple Choice

Which of the following statements is correct with respect to set-off of assets and liabilities?

• A) If a right of set-off exists, an entity shall disclose the net amount of the financial assets and the financial liability in the notes to the accounts.
• B) If a right of set-off exists, an entity shall disclose the net amount of the financial assets and the financial liability in income statement.
• C) If a right of set-off exists, an entity shall present the net amount of the financial assets and the financial liability in the statement of financial position.
• D) If a right of set-off exists, an entity shall present the net amount of the financial assets and the financial liability in income statement.
• E) None of the given answers.

---

Definitions:

Exempt Employee

An employee who is exempt from overtime pay and minimum wage requirements, typically based on their job duties and salary level.

FLSA

The Fair Labor Standards Act, a US labor law that sets out minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.

Exempt Workers

Employees not covered by the Fair Labor Standards Act (FLSA), often not eligible for overtime pay due to their job type.

Promissory Estoppel

A legal principle preventing a party from retracting a promise which the other party has reasonably relied upon to their detriment.