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 To cancel an accounting entry with an equal but opposite entry. 

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Offsetting is another term for netting. With offsetting, you show your company's assets and liabilities on the balance sheet on a net basis. In offset accounting, you decrease the total, or net, of a different account balance to create a net balance. Offsetting is purely a presentation method, not a type of accounting. You can only do this when your company has the legal right to offset or counter the position. Offsetting makes it easier to quickly determine an item's historical treatment and book value.
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It means setting of expensed items which are of capital nature.
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setting of expensed against certain accounting transactions which of capital in nature

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Offset accounting means setting of expensed against certain accounting transactions which of capital in nature
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Account that reduces the gross balance of another account to yield a net balance

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Offset accounting means setting of expensed against certain accounting transactions which of capital in nature
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1.Accounting: To cancel an accounting entry with an equal but opposite entry.

2.Banking: Bank's or other lender's right (called right to offset) to seize a delinquent debtor's (and/or the guarantor's) any account balance in any other bank on obtaining a garnishee order from a court. See also setoff.

3.Futures and options trading: To liquidate a position by entering an equivalent but opposite transaction in the same delivery month. Offsetting cancels the obligation of making (or taking) physical delivery of the underlying commodity or financial instrument. To offset an initial purchase, a sale is made; to offset an initial sale, a purchase is made.

 

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Hello

In accounting, an offset is essentially a withdrawal from one account to diminish an expense toward other account. A prime example of an offset in government accounting occurs in times of financial uncertainty and budget deficits, where cuts from programs deemed unnecessary serve to offset necessary expenses with the end goal of balancing the books. The same general principle applies to both personal and business accounting; however, in personal and business accounting, running a long-term deficit simply isn't an option and will result in bankruptcy. Offsets may also refer to tax offsets, such as claiming various deductibles.

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