Assets and liabilities, and income and expenses are not to be offset unless:
A) they are financial assets and liabilities.
B) they are in respect of borrowing and lending activities such as interest revenue and interest expense.
C) required or permitted by an Australian accounting standard.
D) the auditors approve the offset.

Question

Quizplus · Accepted Answer

According to the principles of accounting, assets and liabilities, and income and expenses should not be offset, except where required or permitted by an Australian accounting standard. Therefore, option C is the correct choice. Options A, B, and D are incorrect because they do not comply with the general principles of accounting.

Assets and Liabilities, and Income and Expenses Are Not to Be