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:

Echoic Memory

A type of sensory memory that retains audio information for a short period after the original sound has ceased.

Iconic Memory

A component of the visual memory system which includes a very brief (<1 second), pre-categorical, high-capacity memory store.

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses.

Atkinson and Shiffrin

Psychologists who proposed a model of memory in the 1960s, known as the multi-store or modal model, which includes the sensory register, short-term memory, and long-term memory.