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:

Adam Smith

An 18th-century Scottish economist and philosopher, best known as the author of "The Wealth of Nations" and as the father of modern economics.

Amerigo Vespucci

An Italian merchant, explorer, and navigator from the Republic of Florence, who is best known for his namesake of the continents of North and South America.

Zheng He

A Chinese mariner, explorer, diplomat, and fleet admiral who commanded expeditionary voyages to Southeast Asia, the Middle East, and East Africa from 1405 to 1433.

Borderland

A region near or along a border that often embodies a blend of cultures, identities, and political tensions.