eposits held as compensating balances a. if legally restricted and held against long-term credit may be included among current assets b. if legally restricted and held against short term credit may be included as cash c. if not legally restricted and held against short-term credit should be included in the cash balance. d. if not legally restricted and held against sho
eposits held as compensating balances a. if legally restricted and held against long-term credit may be included among current assets b. if legally restricted and held against short term credit may be included as cash c. if not legally restricted and held against short-term credit should be included in the cash balance. d. if not legally restricted and held against sho
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 8DQ
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Deposits held as compensating balances
a. if legally restricted and held against long-term credit may be included among current assets
b. if legally restricted and held against short term credit may be included as cash
c. if not legally restricted and held against short-term credit should be included in the cash balance.
d. if not legally restricted and held against short-term credit should be reported separately from cash but is included among the current assets.
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