What is a compensating balance?
A) Savings account balances.
B) Margin accounts held with brokers.
C) Temporary investments serving as collateral for outstanding loans.
D) Minimum deposits required to be maintained in connection with a borrowing arrangement.
Correct Answer:
Verified
Q25: Bank overdrafts, if material, should be
A) reported
Q26: A cash equivalent is a short-term, highly
Q27: Travel advances should be reported as
A) supplies.
B)
Q28: U.S.GAAP permits the reversal of impairment losses
Q29: For a loan receivable, impairment loss is
Q31: In which account are post-dated checks received
Q32: Under which section of the balance sheet
Q33: Companies must measure the loss on impairment
Q34: When a company has cash available in
Q35: Deposits held as compensating balances
A) usually do
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