Which Statement Is Not Correct About Offsetting

question 23

Multiple Choice

Which statement is not correct about offsetting?

• A)Offsetting is required under IFRS when the entity is willing and legally able to offset.
• B)Offsetting is required when it better reflects the economic substance of the transaction.
• C)Offsetting is generally permitted under IFRS,unless it violates an accounting principle.
• D)Offsetting is generally permitted of the allowance for doubtful accounts.

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Definitions:

Material

The matter from which a thing is or can be made, often categorized by properties such as strength, elasticity, and conductivity.

Chemical Sample

A portion or quantity of a substance taken for analysis or testing to understand its composition, purity, or other properties.

Density

This physical property represents the ratio of an object's mass to its volume, showing how tightly matter is packed within it.

Volume

The amount of space that an object or substance occupies, expressed in cubic units.