WebDeposits held as compensating balance a. Usually do not earn interest. b. If legally restricted and held against short-term credit may be … WebDec 31, 2016 · Department of Accountancy and Management Accounting. Departmental Quiz #1 – ACCL03B. Marian Company reported the checkbook balance on December 31, 2016 at P8,000,000. In addition, the entity held the following items in the safe on that date: Check Payable to Marian, dated January 2, 2024 in payment of a sale,
Compensating Balance: Definition, Example, Accoiunting Rules - Investopedia
WebCompensating balance is an amount that is kept as collateral for the loan taken as per the terms of the agreement. It is the minimum balance maintained by the borrower with the … WebDeposits held as compensating balance. A. Usually do not earn interest. B. If legally restricted and held against short term credit may be included as cash. C. If legally restricted and held against long term credit may be included among current assets. D. … holkham outlaw
Accounting Theories with Answers - Drills PART I
WebDeposits held as compensating balances usually do not earn interest. if legally restricted and held against short-term credit may be included as cash. if legally restricted and held against long-term credit may be included among current assets. none of these. ... and one of them has a positive cash balance and the other has an overdraft, ... WebA compensating balance is that portion of any demand deposit maintained by a corporation which constitutes support for existing borrowing arrangements of a corporation with a lending institution. A compensating balance representing a legally restricted deposit held against short-term borrowing arrangements should be stated separately among the ... WebStudy with Quizlet and memorize flashcards containing terms like Which of the following is considered cash? a. Certificates of deposit (CDs) b. Money market checking accounts c. Money market savings certificates d. Postdated checks, Which of the following is not considered cash for financial reporting purposes? a. Petty cash funds and change funds … humane society help with vet bills