Which Statement Is Correct About Offsetting

question 29

Multiple Choice

Which statement is correct about offsetting?

• A)It deteriorates key financial ratios.
• B)It shows the net amount of related assets and liabilities.
• C)It shows the related assets and liabilities as contra accounts.
• D)It makes it easier for borrowers to fulfill covenants.

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Definitions:

Locations

In the context of operations management, it refers to the strategic positioning of facilities like factories or warehouses to optimize logistics and supply chain efficiency.

Ethical Considerations

Moral principles that influence decision-making processes, ensuring actions are conducted with integrity and respect for others.

Location Decisions

The process of choosing a site for a business operation based on factors such as cost, accessibility, and market proximity.

Incentives

Motivational tools or rewards designed to encourage specific behavior or actions from individuals or groups.