Compensating balance agreements that do not legally restrict the amount of funds shown on the balance sheet should be reported in the
A) current asset section.
B) long-term investment section.
C) other asset section.
D) notes of the financial statements.

Question

Quizplus · Accepted Answer

Compensating balance agreements that do not legally restrict the amount of funds should be disclosed in the notes of the financial statements, providing transparency about the company's financial arrangements without affecting the reported asset amounts on the balance sheet.

Compensating Balance Agreements That Do Not Legally Restrict the Amount