Compensating Balances Are a Restriction on the Use of a Company's

question 162

Multiple Choice

Compensating balances are a restriction on the use of a company's cash and should be

• A) reported as a current asset.
• B) reported as a noncurrent asset.
• C) disclosed in the financial statements.
• D) reported as a reduction of cash.

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Definitions:

Territoriality

The behavioral pattern exhibited by individuals to claim an area, defending it against others.

Property Rights

Legal rights that entail the ownership and use of a specific property, including the right to convey it to others.

Sociable

Having the characteristic of enjoying companionship; inclined to seek out and enjoy the company of others.

Aggression

Behaviors or actions intended to harm or intimidate others.