Netting Is the Process Under a Netting Agreement of Combining

question 56

True/False

Netting is the process under a netting agreement of combining all relevant outstanding transactions between two counterparties and reducing them to a single net sum for a party to either pay or receive.

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Definitions:

Assets

Assets are possessions or property that a company owns or controls with the anticipation of receiving future economic gains.

Expenses

Costs incurred in the process of earning revenue; may include costs like rent, salaries, and utilities.

Business Transaction

An economic event or condition that directly changes an entity’s financial condition or directly affects its results of operations.

Sales Offer

A promotion or deal designed to attract customers by offering products or services at a reduced price or with added incentives.