Which of the Following Is Not True with Respect to the Reporting

question 59

Multiple Choice

Which of the following is not true with respect to the reporting of cash?

• A) Cash equivalents are normally combined with cash and reported as a current asset.
• B) Compensating balances are minimum cash balances required by the bank.
• C) Restricted cash can be either a current or a non-current asset, depending on when it is expected to be used.
• D) Cash overdrafts are reported as contra-assets.

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Definitions:

Domestic Jobs

Employment opportunities within a country's borders, as opposed to jobs located overseas.

Free International Trade

The exchange of goods and services between countries without the imposition of restrictions such as tariffs, quotas, or subsidies.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the higher price they actually receive.

International Trade

Swapping goods and services across the borders of different countries or regions.