Compensating Balances Are Kept as Part of the Cash Account

question 92

True/False

Compensating balances are kept as part of the Cash account balance on the balance sheet.

---

Definitions:

Tax Returns

Documents filed with the government detailing income earned, tax payable, and other financial information, used to assess tax liabilities.

OAS Benefits

Monthly payments provided by the government to eligible individuals who are 65 years of age or older, as part of the Old Age Security program in Canada.

Population Density

A measure of the number of individuals living in a unit area, usually per square kilometer or mile, indicating how crowded an area is.

Square Kilometres

A unit of area measurement equal to a square that is one kilometer on each side.