It is improper to offset assets and liabilities in the balance sheet, except where a right of offset exists.

Name: It is improper to offset assets and liabilities in the balance sheet, except where a right of offset exists.
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Quizplus · Accepted Answer

Offsetting assets and liabilities in the balance sheet is generally not allowed unless there is a legal right of setoff that allows a company to net its assets against its liabilities, such as in the case of certain financial instruments and derivatives under specific conditions.

It Is Improper to Offset Assets and Liabilities in the Balance