Compensating balanceGroup of answer choicesIf legally restricted is reported as part of the regular cash account.If legally restricted is reported as cash held as compensating balance and classified as current asset if related to short term loan.If legally restricted is reported as cash held as compensating balance and classified as current asset if related to long term loanIf not legally restricted is reported separately in the current asset section of the statement of financial position.

Which of the following is not considered cash for financial reporting purposes?Group of answer choicesPetty cash funds and postal money orderUnrestricted compensating balancesDividend, interest and tax fundPostdated and stale checks from customers

Which of the following is an example of restricted cash?Select answer from the options belowone year GICcash set aside for an upcoming real estate dealtreasury bill which matures in 90 daysamount in company's chequing accountSave for LaterSubmit Answer

Which of the following would you NOT expect to see on a balance sheet?Group of answer choicesLiabilitiesCapitalExpensesCash

What happens when the Cash account has a credit balance?Select answer from the options belowit will be reported as a current liability on the balance sheetnothing - it is supposed to have a credit balancethe company will use its restricted fundsit is reported as a contra-cash account under current assetsSave for LaterSubmit Answer

DEF Company requires cash to be set aside as collateral for a letter of credit which will be used by the company in the next 12 months. How will this cash be classified?Select answer from the options belownon-current asset as it is restricted cashcurrent liability as it is restricted cashcurrent asset as it is not restricted cashcurrent asset as it is restricted cashSave for LaterSubmit Answer