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:

Housing Costs

Expenses associated with owning or renting a home, including mortgage or rent payments, utilities, maintenance, and taxes.

CPI (Consumer Price Index)

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Real Value

The value of an object, factoring in the effects of inflation on purchasing power.

CPI (Consumer Price Index)

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the cost of living.