An Offset Agreement Occurs When a Firm Agrees to Purchase

question 66

True/False

An offset agreement occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

---

Definitions:

Petty Cash Fund

A small amount of cash kept on hand for covering minor and incidental expenses in a business, managed through a petty cash system.

Journal Entry

An official written record that represents a transaction in accounting, used to transfer information to the general ledger.

Cash Short and Over

An account that tracks discrepancies between the expected cash amount and the actual amount received or disbursed.

Control Environment

The set of standards, processes, and structures that provide the foundation for carrying out internal control across the organization, influencing the overall attitude, awareness, and actions concerning the internal control system and its importance to the entity.