what is offseting assets and liabilities? reading 33

CFA Level I
#1

and what is the purpose of offseting, and why it is prohibited generally

#2

give us more info, wolwol. what’s the context?

#3

For example, you sell company product A on account, then you will have account receivable (asset). At mean time, you buy product B from the same company on account, then you will have account payable (liability). You cannot offset the asset and liablity and report only the net amount.

#4

not combine two accounts into one, right?

#5

Yes. You cannot combine those two accounts.