Deposits held as compensating balances... O a. if legally restricted and held against short-term credit may be included as cash. • b. if legally restricted and held against long-term credit may be included among current assets. • c. if legally restricted and held against long-term credit may be included among non-current assets. • d. usually do not earn interest.
Added by Muhammad Faris S.
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Deposits held as compensating balances, if legally restricted and held against short-term credit, may be included as cash. This is because they are readily available and can be used to meet immediate financial obligations. b. If these deposits are legally Show more…
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