A Savings Account or Certificate of Deposit That Imposes a Substantial

question 6

True/False

A savings account or certificate of deposit that imposes a substantial penalty for early withdrawals should not be classified as Cash on the balance sheet.

---

Definitions:

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments, not directly related to the entity's primary business operations.

Land

Land is a tangible asset representing a piece of earth's surface which is owned and has a specific value attached to it, often used for commercial or residential purposes.

Income Tax Expense

The total amount of income tax that a company calculates it owes for a specific period.

Provincial Income Tax

The tax levied by a provincial government on the income of individuals and organizations within its jurisdiction, varying from province to province.