The Effect of Setting Off on the Gearing Ratio of the Reporting

question 18

Multiple Choice

The effect of setting off on the gearing ratio of the reporting entity is to:

• A) Increase it if the net amount is a liability.
• B) Increase it if the net amount is an asset.
• C) Decrease it.
• D) Leave it unchanged.
• E) None of the given answers.

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Definitions:

Trust Assets

Assets that are held and managed by a trust for the benefit of the trust's beneficiaries.

Investment Professional

an individual or organization specialized in advising clients on where and how to invest their money to achieve financial growth.

Trust Agreement

A legal document that establishes a trust and outlines how it will be administered and specifies the rights and duties of the parties involved.

Indemnity Contracts

Legal agreements in which one party agrees to compensate another for any loss or damage incurred.