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Compensating Balance Agreements That Legally Restrict Cash Should

Question 1

Multiple Choice

Compensating balance agreements that legally restrict cash should


A) only be described in the footnotes to the financial statements
B) be separately reported in the current assets portion of the balance sheet if they are against short-term borrowings
C) be separately classified as noncurrent assets on the balance sheet if they are against short-term borrowings
D) not be shown on the balance sheet

Correct Answer:

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