What Is the Balance Sheet Classification of a Bank Account

question 14

Multiple Choice

What is the balance sheet classification of a bank account whose fund balance is restricted for retirement of bonds that mature in six years?

• A) current asset
• B) noncurrent asset
• C) current liability
• D) noncurrent liability

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Definitions:

Share Offer

The issuance of shares by a company to existing or potential investors, often to raise capital for business operations or expansions.

Calls in Advance

Money received by a company from shareholders before their shares have been issued to them, often applied towards future calls on shares.

Share Issuance Costs

Expenses associated with the issuance of new shares, such as underwriting, legal, and registration fees.

Financial Statements

Formal records of financial activities and position of a business, person, or other entity, presenting the financial results over a specific period.