What Condition Must Be Present When a Financial Asset and a Financial

question 11

Multiple Choice

What condition must be present when a financial asset and a financial liability are to be offset?

• A) The entity has a legally enforceable right to set off the recognised amount
• B) The entity intends to either settle on a net basis or realise the asset and settle the liability simultaneously
• C) Either A or B may be present
• D) Both A and B must be present

---

Definitions:

Positive Amount

A positive amount refers to a quantity greater than zero, used in various contexts to denote a non-negative, beneficial, or additive value.

Pollution Per Day

A measure of the total amount of pollution emitted in a single day, which can be measured in terms of particulate matter, carbon emissions, or other pollutants.

Firm A

Placeholder name commonly used to refer to a hypothetical or specific company in economic models or discussions.

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm.